Correlation Between Metro Investment and Guangzhou Tinci
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By analyzing existing cross correlation between Metro Investment Development and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Metro Investment and Guangzhou Tinci 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 Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Guangzhou Tinci.
Diversification Opportunities for Metro Investment and Guangzhou Tinci
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Guangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Metro Investment i.e., Metro Investment and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Metro Investment and Guangzhou Tinci
Assuming the 90 days trading horizon Metro Investment is expected to generate 7.19 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Metro Investment Development is 1.86 times less risky than Guangzhou Tinci. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,835 in Guangzhou Tinci Materials on September 2, 2024 and sell it today you would earn a total of 634.00 from holding Guangzhou Tinci Materials or generate 34.55% 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. Guangzhou Tinci Materials
Performance |
| Timeline |
| Metro Investment Dev |
| Guangzhou Tinci Materials |
Metro Investment and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Guangzhou Tinci
The main advantage of trading using opposite Metro Investment and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Metro Investment vs. Guangzhou Tinci Materials | Metro Investment vs. Suzhou Xingye Material | Metro Investment vs. King Strong New Material | Metro Investment vs. Jiajia Food Group |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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