Correlation Between Metropolitan Steel and Supernet
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By analyzing existing cross correlation between Metropolitan Steel Corp and Supernet, you can compare the effects of market volatilities on Metropolitan Steel and Supernet 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 Steel with a short position of Supernet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Steel and Supernet.
Diversification Opportunities for Metropolitan Steel and Supernet
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Metropolitan and Supernet is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Steel Corp and Supernet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supernet and Metropolitan Steel 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 Steel Corp are associated (or correlated) with Supernet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supernet has no effect on the direction of Metropolitan Steel i.e., Metropolitan Steel and Supernet go up and down completely randomly.
Pair Corralation between Metropolitan Steel and Supernet
Assuming the 90 days trading horizon Metropolitan Steel is expected to generate 3.57 times less return on investment than Supernet. But when comparing it to its historical volatility, Metropolitan Steel Corp is 1.85 times less risky than Supernet. It trades about 0.11 of its potential returns per unit of risk. Supernet is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,206 in Supernet on September 12, 2024 and sell it today you would earn a total of 349.00 from holding Supernet or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Metropolitan Steel Corp vs. Supernet
Performance |
| Timeline |
| Metropolitan Steel Corp |
| Supernet |
Metropolitan Steel and Supernet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Steel and Supernet
The main advantage of trading using opposite Metropolitan Steel and Supernet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Steel position performs unexpectedly, Supernet 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 Supernet will offset losses from the drop in Supernet's long position.| Metropolitan Steel vs. Masood Textile Mills | Metropolitan Steel vs. Fauji Foods | Metropolitan Steel vs. KSB Pumps | Metropolitan Steel vs. Mari Petroleum |
| Supernet vs. Engro Polymer Chemicals | Supernet vs. Ghani Chemical Industries | Supernet vs. Sindh Modaraba Management | Supernet vs. Agritech |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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