Correlation Between Metro Investment and Zhejiang Tongxing
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By analyzing existing cross correlation between Metro Investment Development and Zhejiang Tongxing Technology, you can compare the effects of market volatilities on Metro Investment and Zhejiang Tongxing 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 Tongxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Zhejiang Tongxing.
Diversification Opportunities for Metro Investment and Zhejiang Tongxing
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Zhejiang Tongxing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tongxing 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 Tongxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tongxing has no effect on the direction of Metro Investment i.e., Metro Investment and Zhejiang Tongxing go up and down completely randomly.
Pair Corralation between Metro Investment and Zhejiang Tongxing
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 0.75 times more return on investment than Zhejiang Tongxing. However, Metro Investment Development is 1.34 times less risky than Zhejiang Tongxing. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Tongxing Technology is currently generating about 0.01 per unit of risk. If you would invest 465.00 in Metro Investment Development on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Metro Investment Development or generate 0.86% 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. Zhejiang Tongxing Technology
Performance |
| Timeline |
| Metro Investment Dev |
| Zhejiang Tongxing |
Metro Investment and Zhejiang Tongxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Zhejiang Tongxing
The main advantage of trading using opposite Metro Investment and Zhejiang Tongxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Zhejiang Tongxing 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 Tongxing will offset losses from the drop in Zhejiang Tongxing'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 |
| Zhejiang Tongxing vs. Sunny Loan Top | Zhejiang Tongxing vs. Sportsoul Co Ltd | Zhejiang Tongxing vs. Metro Investment Development | Zhejiang Tongxing vs. Zhejiang Construction Investment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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