Correlation Between Metro Investment and Chengtun Mining
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By analyzing existing cross correlation between Metro Investment Development and Chengtun Mining Group, you can compare the effects of market volatilities on Metro Investment and Chengtun Mining 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 Chengtun Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Chengtun Mining.
Diversification Opportunities for Metro Investment and Chengtun Mining
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Metro and Chengtun is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Chengtun Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengtun Mining Group 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 Chengtun Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengtun Mining Group has no effect on the direction of Metro Investment i.e., Metro Investment and Chengtun Mining go up and down completely randomly.
Pair Corralation between Metro Investment and Chengtun Mining
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.4 times more return on investment than Chengtun Mining. However, Metro Investment is 1.4 times more volatile than Chengtun Mining Group. It trades about 0.0 of its potential returns per unit of risk. Chengtun Mining Group is currently generating about -0.01 per unit of risk. If you would invest 511.00 in Metro Investment Development on October 27, 2024 and sell it today you would lose (136.00) from holding Metro Investment Development or give up 26.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Chengtun Mining Group
Performance |
| Timeline |
| Metro Investment Dev |
| Chengtun Mining Group |
Metro Investment and Chengtun Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Chengtun Mining
The main advantage of trading using opposite Metro Investment and Chengtun Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Chengtun Mining 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 Chengtun Mining will offset losses from the drop in Chengtun Mining's long position.| Metro Investment vs. Zijin Mining Group | Metro Investment vs. Suzhou Douson Drilling | Metro Investment vs. Shengda Mining Co | Metro Investment vs. Chenzhou Jingui Silver |
| Chengtun Mining vs. Hainan Airlines Co | Chengtun Mining vs. Juneyao Airlines | Chengtun Mining vs. Longjian Road Bridge | Chengtun Mining vs. Zhongshan Broad Ocean Motor |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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