Correlation Between Metro Investment and Zhejiang Hisoar
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By analyzing existing cross correlation between Metro Investment Development and Zhejiang Hisoar Pharmaceutical, you can compare the effects of market volatilities on Metro Investment and Zhejiang Hisoar 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 Zhejiang Hisoar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Zhejiang Hisoar.
Diversification Opportunities for Metro Investment and Zhejiang Hisoar
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Metro and Zhejiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Zhejiang Hisoar Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Hisoar Phar 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 Zhejiang Hisoar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Hisoar Phar has no effect on the direction of Metro Investment i.e., Metro Investment and Zhejiang Hisoar go up and down completely randomly.
Pair Corralation between Metro Investment and Zhejiang Hisoar
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.32 times more return on investment than Zhejiang Hisoar. However, Metro Investment is 1.32 times more volatile than Zhejiang Hisoar Pharmaceutical. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Hisoar Pharmaceutical is currently generating about -0.01 per unit of risk. If you would invest 369.00 in Metro Investment Development on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Metro Investment Development or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Zhejiang Hisoar Pharmaceutical
Performance |
| Timeline |
| Metro Investment Dev |
| Zhejiang Hisoar Phar |
Metro Investment and Zhejiang Hisoar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Zhejiang Hisoar
The main advantage of trading using opposite Metro Investment and Zhejiang Hisoar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Zhejiang Hisoar 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 Zhejiang Hisoar will offset losses from the drop in Zhejiang Hisoar's long position.| Metro Investment vs. Jiamei Food Packaging | Metro Investment vs. Zhejiang Huatong Meat | Metro Investment vs. Beijing Jiaman Dress | Metro Investment vs. HaiXin Foods Co |
| Zhejiang Hisoar vs. Guangdong Jingyi Metal | Zhejiang Hisoar vs. Guangdong Ellington Electronics | Zhejiang Hisoar vs. Dongnan Electronics Co | Zhejiang Hisoar vs. Ningbo Fujia Industrial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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