Correlation Between Metro Investment and Flat Glass
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By analyzing existing cross correlation between Metro Investment Development and Flat Glass Group, you can compare the effects of market volatilities on Metro Investment and Flat Glass 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 Metro Investment with a short position of Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and Flat Glass.
Diversification Opportunities for Metro Investment and Flat Glass
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metro and Flat is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group and Metro Investment 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 Metro Investment Development are associated (or correlated) with Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Metro Investment i.e., Metro Investment and Flat Glass go up and down completely randomly.
Pair Corralation between Metro Investment and Flat Glass
Assuming the 90 days trading horizon Metro Investment is expected to generate 3.16 times less return on investment than Flat Glass. But when comparing it to its historical volatility, Metro Investment Development is 1.33 times less risky than Flat Glass. It trades about 0.06 of its potential returns per unit of risk. Flat Glass Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,565 in Flat Glass Group on September 24, 2024 and sell it today you would earn a total of 557.00 from holding Flat Glass Group or generate 35.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Metro Investment Development vs. Flat Glass Group
Performance |
Timeline |
Metro Investment Dev |
Flat Glass Group |
Metro Investment and Flat Glass Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Investment and Flat Glass
The main advantage of trading using opposite Metro Investment and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.Metro Investment vs. PetroChina Co Ltd | Metro Investment vs. China Mobile Limited | Metro Investment vs. CNOOC Limited | Metro Investment vs. Ping An Insurance |
Flat Glass vs. Zhejiang Construction Investment | Flat Glass vs. Kunwu Jiuding Investment | Flat Glass vs. Metro Investment Development | Flat Glass vs. Xiandai Investment 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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