Correlation Between Metro Investment and HaiXin Foods
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By analyzing existing cross correlation between Metro Investment Development and HaiXin Foods Co, you can compare the effects of market volatilities on Metro Investment and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and HaiXin Foods.
Diversification Opportunities for Metro Investment and HaiXin Foods
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and HaiXin is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Metro Investment i.e., Metro Investment and HaiXin Foods go up and down completely randomly.
Pair Corralation between Metro Investment and HaiXin Foods
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 0.86 times more return on investment than HaiXin Foods. However, Metro Investment Development is 1.17 times less risky than HaiXin Foods. It trades about 0.03 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.02 per unit of risk. If you would invest 381.00 in Metro Investment Development on December 8, 2024 and sell it today you would earn a total of 3.00 from holding Metro Investment Development or generate 0.79% 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. HaiXin Foods Co
Performance |
| Timeline |
| Metro Investment Dev |
| HaiXin Foods |
Metro Investment and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and HaiXin Foods
The main advantage of trading using opposite Metro Investment and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Metro Investment vs. Northking Information Technology | ||
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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