Correlation Between Metropolitan Bank and Easycall Communications
Can any of the company-specific risk be diversified away by investing in both Metropolitan Bank and Easycall Communications 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 Metropolitan Bank and Easycall Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metropolitan Bank Trust and Easycall Communications Philippines, you can compare the effects of market volatilities on Metropolitan Bank and Easycall Communications 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 Metropolitan Bank with a short position of Easycall Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Bank and Easycall Communications.
Diversification Opportunities for Metropolitan Bank and Easycall Communications
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Metropolitan and Easycall is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Bank Trust and Easycall Communications Philip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easycall Communications and Metropolitan Bank 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 Metropolitan Bank Trust are associated (or correlated) with Easycall Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easycall Communications has no effect on the direction of Metropolitan Bank i.e., Metropolitan Bank and Easycall Communications go up and down completely randomly.
Pair Corralation between Metropolitan Bank and Easycall Communications
Assuming the 90 days trading horizon Metropolitan Bank Trust is expected to under-perform the Easycall Communications. But the stock apears to be less risky and, when comparing its historical volatility, Metropolitan Bank Trust is 8.38 times less risky than Easycall Communications. The stock trades about -0.16 of its potential returns per unit of risk. The Easycall Communications Philippines is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 269.00 in Easycall Communications Philippines on October 24, 2024 and sell it today you would earn a total of 21.00 from holding Easycall Communications Philippines or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.94% |
| Values | Daily Returns |
Metropolitan Bank Trust vs. Easycall Communications Philip
Performance |
| Timeline |
| Metropolitan Bank Trust |
| Easycall Communications |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Metropolitan Bank and Easycall Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Bank and Easycall Communications
The main advantage of trading using opposite Metropolitan Bank and Easycall Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Bank position performs unexpectedly, Easycall Communications 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 Easycall Communications will offset losses from the drop in Easycall Communications' long position.| Metropolitan Bank vs. Metro Retail Stores | Metropolitan Bank vs. Premiere Entertainment | Metropolitan Bank vs. Jollibee Foods Corp | Metropolitan Bank vs. Philippine Business Bank |
| Easycall Communications vs. BDO Unibank | Easycall Communications vs. Union Bank of | Easycall Communications vs. Philex Mining Corp | Easycall Communications vs. Metropolitan Bank Trust |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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