Correlation Between Xingguang Agricultural and Metro Investment
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By analyzing existing cross correlation between Xingguang Agricultural Mach and Metro Investment Development, you can compare the effects of market volatilities on Xingguang Agricultural 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 Xingguang Agricultural with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Metro Investment.
Diversification Opportunities for Xingguang Agricultural and Metro Investment
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xingguang and Metro is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach 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 Xingguang Agricultural 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 Xingguang Agricultural Mach 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 Xingguang Agricultural i.e., Xingguang Agricultural and Metro Investment go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Metro Investment
Assuming the 90 days trading horizon Xingguang Agricultural Mach is expected to under-perform the Metro Investment. But the stock apears to be less risky and, when comparing its historical volatility, Xingguang Agricultural Mach is 1.06 times less risky than Metro Investment. The stock trades about -0.29 of its potential returns per unit of risk. The Metro Investment Development is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Metro Investment Development on October 22, 2024 and sell it today you would lose (15.00) from holding Metro Investment Development or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Metro Investment Development
Performance |
| Timeline |
| Xingguang Agricultural |
| Metro Investment Dev |
Xingguang Agricultural and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Metro Investment
The main advantage of trading using opposite Xingguang Agricultural and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural 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.| Xingguang Agricultural vs. Unisplendour Corp | Xingguang Agricultural vs. Shanghai V Test Semiconductor | Xingguang Agricultural vs. Union Semiconductor Co | Xingguang Agricultural vs. Panda Financial Holding |
| Metro Investment vs. Nuode Investment Co | Metro Investment vs. Zhejiang Construction Investment | Metro Investment vs. Jointo Energy Investment | Metro Investment vs. Jiangsu Yueda Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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