Correlation Between METTLER TOLEDO and JINHUI SHIPPING
Can any of the company-specific risk be diversified away by investing in both METTLER TOLEDO and JINHUI SHIPPING at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining METTLER TOLEDO and JINHUI SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METTLER TOLEDO INTL and JINHUI SHIPPING, you can compare the effects of market volatilities on METTLER TOLEDO and JINHUI SHIPPING 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 METTLER TOLEDO with a short position of JINHUI SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of METTLER TOLEDO and JINHUI SHIPPING.
Diversification Opportunities for METTLER TOLEDO and JINHUI SHIPPING
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between METTLER and JINHUI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding METTLER TOLEDO INTL and JINHUI SHIPPING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINHUI SHIPPING and METTLER TOLEDO 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 METTLER TOLEDO INTL are associated (or correlated) with JINHUI SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINHUI SHIPPING has no effect on the direction of METTLER TOLEDO i.e., METTLER TOLEDO and JINHUI SHIPPING go up and down completely randomly.
Pair Corralation between METTLER TOLEDO and JINHUI SHIPPING
Assuming the 90 days trading horizon METTLER TOLEDO INTL is expected to under-perform the JINHUI SHIPPING. But the stock apears to be less risky and, when comparing its historical volatility, METTLER TOLEDO INTL is 1.66 times less risky than JINHUI SHIPPING. The stock trades about -0.01 of its potential returns per unit of risk. The JINHUI SHIPPING is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 77.00 in JINHUI SHIPPING on August 30, 2024 and sell it today you would lose (20.00) from holding JINHUI SHIPPING or give up 25.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
METTLER TOLEDO INTL vs. JINHUI SHIPPING
Performance |
| Timeline |
| METTLER TOLEDO INTL |
| JINHUI SHIPPING |
METTLER TOLEDO and JINHUI SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METTLER TOLEDO and JINHUI SHIPPING
The main advantage of trading using opposite METTLER TOLEDO and JINHUI SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METTLER TOLEDO position performs unexpectedly, JINHUI SHIPPING 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 JINHUI SHIPPING will offset losses from the drop in JINHUI SHIPPING's long position.| METTLER TOLEDO vs. Apple Inc | METTLER TOLEDO vs. Apple Inc | METTLER TOLEDO vs. Superior Plus Corp | METTLER TOLEDO vs. SIVERS SEMICONDUCTORS AB |
| JINHUI SHIPPING vs. WT OFFSHORE | JINHUI SHIPPING vs. THORNEY TECHS LTD | JINHUI SHIPPING vs. NXP Semiconductors NV | JINHUI SHIPPING vs. Taiwan Semiconductor Manufacturing |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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