Correlation Between Zhongtong Guomai and Metro Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongtong Guomai Communication and Metro Investment Development, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Metro Investment.
Diversification Opportunities for Zhongtong Guomai and Metro Investment
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhongtong and Metro is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Metro Investment go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Metro Investment
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.35 times more return on investment than Metro Investment. However, Zhongtong Guomai is 1.35 times more volatile than Metro Investment Development. It trades about 0.19 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.07 per unit of risk. If you would invest 862.00 in Zhongtong Guomai Communication on September 25, 2024 and sell it today you would earn a total of 277.00 from holding Zhongtong Guomai Communication or generate 32.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Metro Investment Development
Performance |
Timeline |
Zhongtong Guomai Com |
Metro Investment Dev |
Zhongtong Guomai and Metro Investment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Metro Investment
The main advantage of trading using opposite Zhongtong Guomai and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. Kweichow Moutai Co | Zhongtong Guomai vs. Shenzhen Mindray Bio Medical | Zhongtong Guomai vs. Jiangsu Pacific Quartz | Zhongtong Guomai vs. G bits Network Technology |
Metro Investment vs. Jilin Jlu Communication | Metro Investment vs. Fiberhome Telecommunication Technologies | Metro Investment vs. Zhongtong Guomai Communication | Metro Investment vs. Air China Ltd |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |