Correlation Between Credit Acceptance and METISA Metalrgica
Can any of the company-specific risk be diversified away by investing in both Credit Acceptance and METISA Metalrgica 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 Credit Acceptance and METISA Metalrgica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credit Acceptance and METISA Metalrgica Timboense, you can compare the effects of market volatilities on Credit Acceptance and METISA Metalrgica 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 Credit Acceptance with a short position of METISA Metalrgica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credit Acceptance and METISA Metalrgica.
Diversification Opportunities for Credit Acceptance and METISA Metalrgica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Credit and METISA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Credit Acceptance and METISA Metalrgica Timboense in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METISA Metalrgica and Credit Acceptance 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 Credit Acceptance are associated (or correlated) with METISA Metalrgica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METISA Metalrgica has no effect on the direction of Credit Acceptance i.e., Credit Acceptance and METISA Metalrgica go up and down completely randomly.
Pair Corralation between Credit Acceptance and METISA Metalrgica
If you would invest 32,500 in Credit Acceptance on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Credit Acceptance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credit Acceptance vs. METISA Metalrgica Timboense
Performance |
| Timeline |
| Credit Acceptance |
| METISA Metalrgica |
Credit Acceptance and METISA Metalrgica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credit Acceptance and METISA Metalrgica
The main advantage of trading using opposite Credit Acceptance and METISA Metalrgica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credit Acceptance position performs unexpectedly, METISA Metalrgica 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 METISA Metalrgica will offset losses from the drop in METISA Metalrgica's long position.| Credit Acceptance vs. Extra Space Storage | Credit Acceptance vs. Warner Music Group | Credit Acceptance vs. GP Investments | Credit Acceptance vs. G2D Investments |
| METISA Metalrgica vs. Recrusul SA | METISA Metalrgica vs. Randon SA Implementos | METISA Metalrgica vs. Electro Ao Altona |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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