Correlation Between Metro Investment and Fujian Boss
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By analyzing existing cross correlation between Metro Investment Development and Fujian Boss Software, you can compare the effects of market volatilities on Metro Investment and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Fujian Boss.
Diversification Opportunities for Metro Investment and Fujian Boss
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metro and Fujian is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Metro Investment i.e., Metro Investment and Fujian Boss go up and down completely randomly.
Pair Corralation between Metro Investment and Fujian Boss
Assuming the 90 days trading horizon Metro Investment is expected to generate 1.2 times less return on investment than Fujian Boss. But when comparing it to its historical volatility, Metro Investment Development is 1.46 times less risky than Fujian Boss. It trades about 0.15 of its potential returns per unit of risk. Fujian Boss Software is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,642 in Fujian Boss Software on September 5, 2024 and sell it today you would earn a total of 153.00 from holding Fujian Boss Software or generate 9.32% 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. Fujian Boss Software
Performance |
| Timeline |
| Metro Investment Dev |
| Fujian Boss Software |
Metro Investment and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Fujian Boss
The main advantage of trading using opposite Metro Investment and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Metro Investment vs. Nanjing Putian Telecommunications | Metro Investment vs. Tianjin Realty Development | Metro Investment vs. Shenyang Huitian Thermal | Metro Investment vs. Shenzhen Changfang Light |
| Fujian Boss vs. Guangdong Jinma Entertainment | Fujian Boss vs. Hainan Mining Co | Fujian Boss vs. JiShi Media Co | Fujian Boss vs. Ye Chiu Metal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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