Correlation Between Metro Investment and G Bits
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By analyzing existing cross correlation between Metro Investment Development and G bits Network Technology, you can compare the effects of market volatilities on Metro Investment and G Bits 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 G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro Investment and G Bits.
Diversification Opportunities for Metro Investment and G Bits
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metro and 603444 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Metro Investment Development and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Metro Investment i.e., Metro Investment and G Bits go up and down completely randomly.
Pair Corralation between Metro Investment and G Bits
Assuming the 90 days trading horizon Metro Investment Development is expected to under-perform the G Bits. In addition to that, Metro Investment is 1.25 times more volatile than G bits Network Technology. It trades about -0.1 of its total potential returns per unit of risk. G bits Network Technology is currently generating about 0.24 per unit of volatility. If you would invest 19,835 in G bits Network Technology on September 25, 2024 and sell it today you would earn a total of 2,492 from holding G bits Network Technology or generate 12.56% 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. G bits Network Technology
Performance |
Timeline |
Metro Investment Dev |
G bits Network |
Metro Investment and G Bits Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metro Investment and G Bits
The main advantage of trading using opposite Metro Investment and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro Investment position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' long position.Metro Investment vs. Jilin Jlu Communication | Metro Investment vs. Fiberhome Telecommunication Technologies | Metro Investment vs. Zhongtong Guomai Communication | Metro Investment vs. Air China Ltd |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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