Correlation Between Metro Investment and Shuhua Sports
Specify exactly 2 symbols:
By analyzing existing cross correlation between Metro Investment Development and Shuhua Sports Co, you can compare the effects of market volatilities on Metro Investment and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Shuhua Sports.
Diversification Opportunities for Metro Investment and Shuhua Sports
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Shuhua is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Metro Investment i.e., Metro Investment and Shuhua Sports go up and down completely randomly.
Pair Corralation between Metro Investment and Shuhua Sports
Assuming the 90 days trading horizon Metro Investment Development is expected to generate 1.22 times more return on investment than Shuhua Sports. However, Metro Investment is 1.22 times more volatile than Shuhua Sports Co. It trades about 0.06 of its potential returns per unit of risk. Shuhua Sports Co is currently generating about 0.02 per unit of risk. If you would invest 396.00 in Metro Investment Development on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Metro Investment Development or generate 17.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro Investment Development vs. Shuhua Sports Co
Performance |
| Timeline |
| Metro Investment Dev |
| Shuhua Sports |
Metro Investment and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Shuhua Sports
The main advantage of trading using opposite Metro Investment and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' 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 |
| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. Industrial and Commercial | Shuhua Sports vs. China Life Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |