Correlation Between House Of and Metropolitan Bank
Can any of the company-specific risk be diversified away by investing in both House Of 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 House Of and Metropolitan Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between House of Investments and Metropolitan Bank Trust, you can compare the effects of market volatilities on House Of 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 House Of with a short position of Metropolitan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of House Of and Metropolitan Bank.
Diversification Opportunities for House Of and Metropolitan Bank
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between House and Metropolitan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding House of Investments 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 House Of 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 House of Investments 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 House Of i.e., House Of and Metropolitan Bank go up and down completely randomly.
Pair Corralation between House Of and Metropolitan Bank
Assuming the 90 days trading horizon House of Investments is expected to generate 2.95 times more return on investment than Metropolitan Bank. However, House Of is 2.95 times more volatile than Metropolitan Bank Trust. It trades about 0.06 of its potential returns per unit of risk. Metropolitan Bank Trust is currently generating about -0.31 per unit of risk. If you would invest 342.00 in House of Investments on November 2, 2024 and sell it today you would earn a total of 7.00 from holding House of Investments or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
House of Investments vs. Metropolitan Bank Trust
Performance |
| Timeline |
| House of Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Metropolitan Bank Trust |
House Of and Metropolitan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with House Of and Metropolitan Bank
The main advantage of trading using opposite House Of and Metropolitan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if House Of 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.| House Of vs. National Reinsurance | House Of vs. COL Financial Group | House Of vs. Philex Mining Corp | House Of vs. Crown Asia Chemicals |
| Metropolitan Bank vs. Philex Mining Corp | Metropolitan Bank vs. Atlas Consolidated Mining | Metropolitan Bank vs. Robinsons Retail Holdings | Metropolitan Bank vs. Lepanto 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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