Correlation Between Metro Investment and Agricultural Bank
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By analyzing existing cross correlation between Metro Investment Development and Agricultural Bank of, you can compare the effects of market volatilities on Metro Investment and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Agricultural Bank.
Diversification Opportunities for Metro Investment and Agricultural Bank
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Metro and Agricultural is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Metro Investment i.e., Metro Investment and Agricultural Bank go up and down completely randomly.
Pair Corralation between Metro Investment and Agricultural Bank
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 2.79 times more return on investment than Agricultural Bank. However, Metro Investment is 2.79 times more volatile than Agricultural Bank of. It trades about 0.14 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.05 per unit of risk. If you would invest 436.00 in Metro Investment Development on September 4, 2024 and sell it today you would earn a total of 31.00 from holding Metro Investment Development or generate 7.11% 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. Agricultural Bank of
Performance |
| Timeline |
| Metro Investment Dev |
| Agricultural Bank |
Metro Investment and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Agricultural Bank
The main advantage of trading using opposite Metro Investment and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Metro Investment vs. Bengang Steel Plates | Metro Investment vs. Guangdong Liantai Environmental | Metro Investment vs. Shenzhen MYS Environmental | Metro Investment vs. Anhui Fuhuang Steel |
| Agricultural Bank vs. Liaoning Chengda Biotechnology | Agricultural Bank vs. Harvest Fund Management | Agricultural Bank vs. Guangzhou Zhujiang Brewery | Agricultural Bank vs. CICC Fund Management |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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