Correlation Between Anhui Transport and Metro Investment
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By analyzing existing cross correlation between Anhui Transport Consulting and Metro Investment Development, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Metro Investment.
Diversification Opportunities for Anhui Transport and Metro Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Metro is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting 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 Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and Metro Investment go up and down completely randomly.
Pair Corralation between Anhui Transport and Metro Investment
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.78 times more return on investment than Metro Investment. However, Anhui Transport Consulting is 1.28 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 0.0 per unit of risk. If you would invest 879.00 in Anhui Transport Consulting on September 1, 2024 and sell it today you would earn a total of 104.00 from holding Anhui Transport Consulting or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Metro Investment Development
Performance |
| Timeline |
| Anhui Transport Cons |
| Metro Investment Dev |
Anhui Transport and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Metro Investment
The main advantage of trading using opposite Anhui Transport and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
| Metro Investment vs. BeiGene | Metro Investment vs. Kweichow Moutai Co | Metro Investment vs. Beijing Roborock Technology | Metro Investment vs. G bits Network Technology |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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