Correlation Between Metro Investment and Geron
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By analyzing existing cross correlation between Metro Investment Development and Geron Co, you can compare the effects of market volatilities on Metro Investment and Geron 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 Geron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Geron.
Diversification Opportunities for Metro Investment and Geron
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metro and Geron is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Geron Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geron 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 Geron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geron has no effect on the direction of Metro Investment i.e., Metro Investment and Geron go up and down completely randomly.
Pair Corralation between Metro Investment and Geron
Assuming the 90 days trading horizon Metro Investment is expected to generate 9.2 times less return on investment than Geron. But when comparing it to its historical volatility, Metro Investment Development is 1.55 times less risky than Geron. It trades about 0.03 of its potential returns per unit of risk. Geron Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,499 in Geron Co on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Geron Co or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Geron Co
Performance |
| Timeline |
| Metro Investment Dev |
| Geron |
Metro Investment and Geron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Geron
The main advantage of trading using opposite Metro Investment and Geron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Geron 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 Geron will offset losses from the drop in Geron's long position.| Metro Investment vs. Industrial and Commercial | Metro Investment vs. China Construction Bank | Metro Investment vs. Bank of China | Metro Investment vs. Agricultural Bank of |
| Geron vs. LianChuang Electronic Technology | Geron vs. Semiconductor Manufacturing Electronics | Geron vs. Fujian Newland Computer | Geron vs. Integrated Electronic Systems |
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 Stocks Directory module to find actively traded stocks across global markets.
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