Correlation Between Metro Investment and Xingguang Agricultural
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By analyzing existing cross correlation between Metro Investment Development and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Metro Investment and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Xingguang Agricultural.
Diversification Opportunities for Metro Investment and Xingguang Agricultural
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Metro and Xingguang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Metro Investment i.e., Metro Investment and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Metro Investment and Xingguang Agricultural
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.04 times more return on investment than Xingguang Agricultural. However, Metro Investment is 1.04 times more volatile than Xingguang Agricultural Mach. It trades about 0.01 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.01 per unit of risk. If you would invest 458.00 in Metro Investment Development on October 7, 2024 and sell it today you would lose (62.00) from holding Metro Investment Development or give up 13.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Metro Investment Dev |
| Xingguang Agricultural |
Metro Investment and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Xingguang Agricultural
The main advantage of trading using opposite Metro Investment and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Metro Investment vs. Jiangsu Flowers King | Metro Investment vs. Chongqing Road Bridge | Metro Investment vs. Kuang Chi Technologies | Metro Investment vs. Gansu Jiu Steel |
| Xingguang Agricultural vs. BeiGene | Xingguang Agricultural vs. G bits Network Technology | Xingguang Agricultural vs. China Mobile Limited | Xingguang Agricultural vs. Gansu Jiu Steel |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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