Correlation Between Metro Investment and Tianjin Yiyi
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By analyzing existing cross correlation between Metro Investment Development and Tianjin Yiyi Hygiene, you can compare the effects of market volatilities on Metro Investment and Tianjin Yiyi and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Metro Investment with a short position of Tianjin Yiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Tianjin Yiyi.
Diversification Opportunities for Metro Investment and Tianjin Yiyi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Tianjin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Tianjin Yiyi Hygiene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Yiyi Hygiene and Metro Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Metro Investment Development are associated (or correlated) with Tianjin Yiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Yiyi Hygiene has no effect on the direction of Metro Investment i.e., Metro Investment and Tianjin Yiyi go up and down completely randomly.
Pair Corralation between Metro Investment and Tianjin Yiyi
Assuming the 90 days trading horizon Metro Investment is expected to generate 2.07 times less return on investment than Tianjin Yiyi. In addition to that, Metro Investment is 1.09 times more volatile than Tianjin Yiyi Hygiene. It trades about 0.05 of its total potential returns per unit of risk. Tianjin Yiyi Hygiene is currently generating about 0.12 per unit of volatility. If you would invest 1,263 in Tianjin Yiyi Hygiene on September 13, 2024 and sell it today you would earn a total of 530.00 from holding Tianjin Yiyi Hygiene or generate 41.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Tianjin Yiyi Hygiene
Performance |
| Timeline |
| Metro Investment Dev |
| Tianjin Yiyi Hygiene |
Metro Investment and Tianjin Yiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Tianjin Yiyi
The main advantage of trading using opposite Metro Investment and Tianjin Yiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Tianjin Yiyi can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tianjin Yiyi will offset losses from the drop in Tianjin Yiyi's long position.| Metro Investment vs. China Life Insurance | Metro Investment vs. Cinda Securities Co | Metro Investment vs. Piotech Inc A | Metro Investment vs. Dongxing Sec Co |
| Tianjin Yiyi vs. Agricultural Bank of | Tianjin Yiyi vs. Industrial and Commercial | Tianjin Yiyi vs. Bank of China | Tianjin Yiyi vs. PetroChina Co Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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