Correlation Between Metro Investment and Shandong Gold
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By analyzing existing cross correlation between Metro Investment Development and Shandong Gold Mining, you can compare the effects of market volatilities on Metro Investment and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Shandong Gold.
Diversification Opportunities for Metro Investment and Shandong Gold
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Metro and Shandong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Metro Investment i.e., Metro Investment and Shandong Gold go up and down completely randomly.
Pair Corralation between Metro Investment and Shandong Gold
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.62 times more return on investment than Shandong Gold. However, Metro Investment is 1.62 times more volatile than Shandong Gold Mining. It trades about 0.03 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.04 per unit of risk. If you would invest 341.00 in Metro Investment Development on November 3, 2024 and sell it today you would earn a total of 32.00 from holding Metro Investment Development or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Shandong Gold Mining
Performance |
| Timeline |
| Metro Investment Dev |
| Shandong Gold Mining |
Metro Investment and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Shandong Gold
The main advantage of trading using opposite Metro Investment and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Metro Investment vs. HaiXin Foods Co | Metro Investment vs. De Rucci Healthy | Metro Investment vs. Yankershop Food Co | Metro Investment vs. Guosheng Financial Holding |
| Shandong Gold vs. V V Food | Shandong Gold vs. Guocheng Mining Co | Shandong Gold vs. Jiangxi Naipu Mining | Shandong Gold vs. Shenyang Blue Silver |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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