Correlation Between Metro Investment and Bank of China
Specify exactly 2 symbols:
By analyzing existing cross correlation between Metro Investment Development and Bank of China, you can compare the effects of market volatilities on Metro Investment and Bank of China 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 Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Bank of China.
Diversification Opportunities for Metro Investment and Bank of China
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Metro and Bank is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China 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 Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Metro Investment i.e., Metro Investment and Bank of China go up and down completely randomly.
Pair Corralation between Metro Investment and Bank of China
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 2.73 times more return on investment than Bank of China. However, Metro Investment is 2.73 times more volatile than Bank of China. It trades about 0.09 of its potential returns per unit of risk. Bank of China is currently generating about 0.13 per unit of risk. If you would invest 436.00 in Metro Investment Development on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Metro Investment Development or generate 4.36% 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. Bank of China
Performance |
| Timeline |
| Metro Investment Dev |
| Bank of China |
Metro Investment and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Bank of China
The main advantage of trading using opposite Metro Investment and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China'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 |
| Bank of China vs. Tongyu Communication | Bank of China vs. Guangzhou Haige Communications | Bank of China vs. Everdisplay Optronics Shanghai | Bank of China vs. Wuhan Yangtze Communication |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |