Correlation Between Benguet Corp and Metropolitan Bank
Can any of the company-specific risk be diversified away by investing in both Benguet Corp and Metropolitan Bank 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 Benguet Corp and Metropolitan Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benguet Corp B and Metropolitan Bank Trust, you can compare the effects of market volatilities on Benguet Corp and Metropolitan Bank 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 Benguet Corp with a short position of Metropolitan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and Metropolitan Bank.
Diversification Opportunities for Benguet Corp and Metropolitan Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benguet and Metropolitan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp B and Metropolitan Bank Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Bank Trust and Benguet 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 Benguet Corp B are associated (or correlated) with Metropolitan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Bank Trust has no effect on the direction of Benguet Corp i.e., Benguet Corp and Metropolitan Bank go up and down completely randomly.
Pair Corralation between Benguet Corp and Metropolitan Bank
If you would invest 7,550 in Metropolitan Bank Trust on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Metropolitan Bank Trust or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Benguet Corp B vs. Metropolitan Bank Trust
Performance |
| Timeline |
| Benguet Corp B |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Metropolitan Bank Trust |
Benguet Corp and Metropolitan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benguet Corp and Metropolitan Bank
The main advantage of trading using opposite Benguet Corp and Metropolitan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benguet Corp position performs unexpectedly, Metropolitan Bank 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 Metropolitan Bank will offset losses from the drop in Metropolitan Bank's long position.| Benguet Corp vs. Philex Mining Corp | Benguet Corp vs. Century Pacific Food | Benguet Corp vs. Semirara Mining Corp | Benguet Corp vs. Apex Mining Co |
| Metropolitan Bank vs. Transpacific Broadband Group | Metropolitan Bank vs. Integrated Micro Electronics | Metropolitan Bank vs. Rizal Commercial Banking | Metropolitan Bank vs. Atlas Consolidated Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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