Correlation Between Metro Investment and Jinhui Liquor
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By analyzing existing cross correlation between Metro Investment Development and Jinhui Liquor Co, you can compare the effects of market volatilities on Metro Investment and Jinhui Liquor 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 Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Jinhui Liquor.
Diversification Opportunities for Metro Investment and Jinhui Liquor
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Jinhui is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor 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 Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Metro Investment i.e., Metro Investment and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Metro Investment and Jinhui Liquor
Assuming the 90 days trading horizon Metro Investment Development is expected to under-perform the Jinhui Liquor. In addition to that, Metro Investment is 1.26 times more volatile than Jinhui Liquor Co. It trades about -0.09 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.05 per unit of volatility. If you would invest 1,949 in Jinhui Liquor Co on October 14, 2024 and sell it today you would lose (171.00) from holding Jinhui Liquor Co or give up 8.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Jinhui Liquor Co
Performance |
| Timeline |
| Metro Investment Dev |
| Jinhui Liquor |
Metro Investment and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Jinhui Liquor
The main advantage of trading using opposite Metro Investment and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Jinhui Liquor 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Metro Investment vs. Henan Shuanghui Investment | Metro Investment vs. Jilin Jlu Communication | Metro Investment vs. Guangxi Wuzhou Communications | Metro Investment vs. Harbin Hatou Investment |
| Jinhui Liquor vs. Vanfund Urban Investment | Jinhui Liquor vs. Metro Investment Development | Jinhui Liquor vs. Zhejiang Construction Investment | Jinhui Liquor vs. Xiandai Investment Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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