Correlation Between Metal Sky and Cannae Holdings
Can any of the company-specific risk be diversified away by investing in both Metal Sky and Cannae Holdings 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 Metal Sky and Cannae Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metal Sky Star and Cannae Holdings, you can compare the effects of market volatilities on Metal Sky and Cannae Holdings 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 Metal Sky with a short position of Cannae Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metal Sky and Cannae Holdings.
Diversification Opportunities for Metal Sky and Cannae Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Metal and Cannae is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Metal Sky Star and Cannae Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannae Holdings and Metal Sky 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 Metal Sky Star are associated (or correlated) with Cannae Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannae Holdings has no effect on the direction of Metal Sky i.e., Metal Sky and Cannae Holdings go up and down completely randomly.
Pair Corralation between Metal Sky and Cannae Holdings
Assuming the 90 days horizon Metal Sky Star is expected to generate 14.28 times more return on investment than Cannae Holdings. However, Metal Sky is 14.28 times more volatile than Cannae Holdings. It trades about 0.2 of its potential returns per unit of risk. Cannae Holdings is currently generating about -0.05 per unit of risk. If you would invest 5.01 in Metal Sky Star on November 5, 2024 and sell it today you would earn a total of 1.21 from holding Metal Sky Star or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.63% |
| Values | Daily Returns |
Metal Sky Star vs. Cannae Holdings
Performance |
| Timeline |
| Metal Sky Star |
| Cannae Holdings |
Metal Sky and Cannae Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metal Sky and Cannae Holdings
The main advantage of trading using opposite Metal Sky and Cannae Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metal Sky position performs unexpectedly, Cannae Holdings 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 Cannae Holdings will offset losses from the drop in Cannae Holdings' long position.| Metal Sky vs. Bilibili | Metal Sky vs. Tesla Inc | Metal Sky vs. Pinterest | Metal Sky vs. Sphere Entertainment Co |
| Cannae Holdings vs. Adtalem Global Education | Cannae Holdings vs. Hamilton Lane | Cannae Holdings vs. ConnectOne Bancorp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |