Correlation Between Jiangsu Flowers and Metro Investment
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By analyzing existing cross correlation between Jiangsu Flowers King and Metro Investment Development, you can compare the effects of market volatilities on Jiangsu Flowers 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 Jiangsu Flowers with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Flowers and Metro Investment.
Diversification Opportunities for Jiangsu Flowers and Metro Investment
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Metro is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Flowers King 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 Jiangsu Flowers 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 Jiangsu Flowers King 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 Jiangsu Flowers i.e., Jiangsu Flowers and Metro Investment go up and down completely randomly.
Pair Corralation between Jiangsu Flowers and Metro Investment
Assuming the 90 days trading horizon Jiangsu Flowers King is expected to under-perform the Metro Investment. In addition to that, Jiangsu Flowers is 2.7 times more volatile than Metro Investment Development. It trades about -0.03 of its total potential returns per unit of risk. Metro Investment Development is currently generating about -0.04 per unit of volatility. If you would invest 401.00 in Metro Investment Development on October 23, 2024 and sell it today you would lose (14.00) from holding Metro Investment Development or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Jiangsu Flowers King vs. Metro Investment Development
Performance |
| Timeline |
| Jiangsu Flowers King |
| Metro Investment Dev |
Jiangsu Flowers and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Flowers and Metro Investment
The main advantage of trading using opposite Jiangsu Flowers and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Flowers 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.| Jiangsu Flowers vs. ButOne Information Corp | Jiangsu Flowers vs. Zhongfu Information | Jiangsu Flowers vs. Jinxiandai Information Industry | Jiangsu Flowers vs. Guangzhou Ruoyuchen Information |
| Metro Investment vs. Eastern Air Logistics | Metro Investment vs. Great Sun Foods Co | Metro Investment vs. Jiahe Foods Industry | Metro Investment vs. Holitech Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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