Correlation Between Ningxia Baofeng and Metro Investment
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By analyzing existing cross correlation between Ningxia Baofeng Energy and Metro Investment Development, you can compare the effects of market volatilities on Ningxia Baofeng and Metro Investment 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 Ningxia Baofeng with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Baofeng and Metro Investment.
Diversification Opportunities for Ningxia Baofeng and Metro Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Metro is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Baofeng Energy and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev and Ningxia Baofeng 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 Ningxia Baofeng Energy are associated (or correlated) with Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Ningxia Baofeng i.e., Ningxia Baofeng and Metro Investment go up and down completely randomly.
Pair Corralation between Ningxia Baofeng and Metro Investment
Assuming the 90 days trading horizon Ningxia Baofeng Energy is expected to generate 0.78 times more return on investment than Metro Investment. However, Ningxia Baofeng Energy is 1.28 times less risky than Metro Investment. It trades about 0.09 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.05 per unit of risk. If you would invest 1,557 in Ningxia Baofeng Energy on September 13, 2024 and sell it today you would earn a total of 58.00 from holding Ningxia Baofeng Energy or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ningxia Baofeng Energy vs. Metro Investment Development
Performance |
| Timeline |
| Ningxia Baofeng Energy |
| Metro Investment Dev |
Ningxia Baofeng and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Baofeng and Metro Investment
The main advantage of trading using opposite Ningxia Baofeng and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Baofeng position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Ningxia Baofeng vs. Metro Investment Development | Ningxia Baofeng vs. Harbin Hatou Investment | Ningxia Baofeng vs. Henan Shuanghui Investment | Ningxia Baofeng vs. HaiXin Foods Co |
| Metro Investment vs. China Life Insurance | Metro Investment vs. Cinda Securities Co | Metro Investment vs. Piotech Inc A | Metro Investment vs. Dongxing Sec 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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