Correlation Between Metro Investment and Luyin Investment
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By analyzing existing cross correlation between Metro Investment Development and Luyin Investment Group, you can compare the effects of market volatilities on Metro Investment and Luyin Investment 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Luyin Investment.
Diversification Opportunities for Metro Investment and Luyin Investment
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Metro and Luyin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin Investment 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Metro Investment i.e., Metro Investment and Luyin Investment go up and down completely randomly.
Pair Corralation between Metro Investment and Luyin Investment
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.81 times more return on investment than Luyin Investment. However, Metro Investment is 1.81 times more volatile than Luyin Investment Group. It trades about 0.02 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.01 per unit of risk. If you would invest 452.00 in Metro Investment Development on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Metro Investment Development or generate 0.66% 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. Luyin Investment Group
Performance |
| Timeline |
| Metro Investment Dev |
| Luyin Investment |
Metro Investment and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Luyin Investment
The main advantage of trading using opposite Metro Investment and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Luyin Investment 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 Luyin Investment will offset losses from the drop in Luyin Investment'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 |
| Luyin Investment vs. Hunan Investment Group | Luyin Investment vs. King Strong New Material | Luyin Investment vs. Super Dragon Engineering Plastics | Luyin Investment vs. Anhui Deli Household |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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