Correlation Between Cinda Securities and Metro Investment
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By analyzing existing cross correlation between Cinda Securities Co and Metro Investment Development, you can compare the effects of market volatilities on Cinda Securities 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 Cinda Securities with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Metro Investment.
Diversification Opportunities for Cinda Securities and Metro Investment
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cinda and Metro is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co 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 Cinda Securities 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 Cinda Securities Co 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 Cinda Securities i.e., Cinda Securities and Metro Investment go up and down completely randomly.
Pair Corralation between Cinda Securities and Metro Investment
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.93 times more return on investment than Metro Investment. However, Cinda Securities Co is 1.07 times less risky than Metro Investment. It trades about 0.03 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.01 per unit of risk. If you would invest 1,179 in Cinda Securities Co on September 2, 2024 and sell it today you would earn a total of 340.00 from holding Cinda Securities Co or generate 28.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.51% |
| Values | Daily Returns |
Cinda Securities Co vs. Metro Investment Development
Performance |
| Timeline |
| Cinda Securities |
| Metro Investment Dev |
Cinda Securities and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Metro Investment
The main advantage of trading using opposite Cinda Securities and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities 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.| Cinda Securities vs. BeiGene | Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Beijing Roborock Technology | Cinda Securities vs. G bits Network Technology |
| Metro Investment vs. Guangzhou Tinci Materials | Metro Investment vs. Suzhou Xingye Material | Metro Investment vs. King Strong New Material | Metro Investment vs. Jiajia Food Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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