Correlation Between Ambase Corp and Metrospaces
Can any of the company-specific risk be diversified away by investing in both Ambase Corp and Metrospaces 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 Ambase Corp and Metrospaces into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambase Corp and Metrospaces, you can compare the effects of market volatilities on Ambase Corp and Metrospaces 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 Ambase Corp with a short position of Metrospaces. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambase Corp and Metrospaces.
Diversification Opportunities for Ambase Corp and Metrospaces
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ambase and Metrospaces is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ambase Corp and Metrospaces in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrospaces and Ambase Corp 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 Ambase Corp are associated (or correlated) with Metrospaces. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrospaces has no effect on the direction of Ambase Corp i.e., Ambase Corp and Metrospaces go up and down completely randomly.
Pair Corralation between Ambase Corp and Metrospaces
Given the investment horizon of 90 days Ambase Corp is expected to generate 205.38 times less return on investment than Metrospaces. But when comparing it to its historical volatility, Ambase Corp is 55.27 times less risky than Metrospaces. It trades about 0.06 of its potential returns per unit of risk. Metrospaces is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Metrospaces on October 22, 2024 and sell it today you would earn a total of 0.01 from holding Metrospaces or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambase Corp vs. Metrospaces
Performance |
| Timeline |
| Ambase Corp |
| Metrospaces |
Ambase Corp and Metrospaces Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambase Corp and Metrospaces
The main advantage of trading using opposite Ambase Corp and Metrospaces positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambase Corp position performs unexpectedly, Metrospaces 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 Metrospaces will offset losses from the drop in Metrospaces' long position.| Ambase Corp vs. Adler Group SA | Ambase Corp vs. Aztec Land Comb | Ambase Corp vs. Bridgemarq Real Estate | Ambase Corp vs. Agritek Holdings |
| Metrospaces vs. Jammin Java Corp | Metrospaces vs. Mongolia Growth Group | Metrospaces vs. Ke Holdings | Metrospaces vs. Medican Enterprises |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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