Correlation Between Metro Investment and Shanghai Sanyou
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By analyzing existing cross correlation between Metro Investment Development and Shanghai Sanyou Medical, you can compare the effects of market volatilities on Metro Investment and Shanghai Sanyou 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 Shanghai Sanyou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Shanghai Sanyou.
Diversification Opportunities for Metro Investment and Shanghai Sanyou
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metro and Shanghai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Shanghai Sanyou Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Sanyou Medical 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 Shanghai Sanyou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Sanyou Medical has no effect on the direction of Metro Investment i.e., Metro Investment and Shanghai Sanyou go up and down completely randomly.
Pair Corralation between Metro Investment and Shanghai Sanyou
Assuming the 90 days trading horizon Metro Investment Development is expected to under-perform the Shanghai Sanyou. In addition to that, Metro Investment is 1.15 times more volatile than Shanghai Sanyou Medical. It trades about -0.28 of its total potential returns per unit of risk. Shanghai Sanyou Medical is currently generating about -0.04 per unit of volatility. If you would invest 2,139 in Shanghai Sanyou Medical on October 17, 2024 and sell it today you would lose (85.00) from holding Shanghai Sanyou Medical or give up 3.97% 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. Shanghai Sanyou Medical
Performance |
| Timeline |
| Metro Investment Dev |
| Shanghai Sanyou Medical |
Metro Investment and Shanghai Sanyou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro Investment and Shanghai Sanyou
The main advantage of trading using opposite Metro Investment and Shanghai Sanyou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Shanghai Sanyou 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 Shanghai Sanyou will offset losses from the drop in Shanghai Sanyou's long position.| Metro Investment vs. Lutian Machinery Co | Metro Investment vs. Shantui Construction Machinery | Metro Investment vs. Linzhou Heavy Machinery | Metro Investment vs. Huasi Agricultural Development |
| Shanghai Sanyou vs. Iat Automobile Technology | Shanghai Sanyou vs. Cultural Investment Holdings | Shanghai Sanyou vs. Metro Investment Development | Shanghai Sanyou vs. Sinomach Automobile 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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