Correlation Between METISA Metalrgica and CCR SA
Can any of the company-specific risk be diversified away by investing in both METISA Metalrgica and CCR SA 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 METISA Metalrgica and CCR SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METISA Metalrgica Timboense and CCR SA, you can compare the effects of market volatilities on METISA Metalrgica and CCR SA 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 METISA Metalrgica with a short position of CCR SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of METISA Metalrgica and CCR SA.
Diversification Opportunities for METISA Metalrgica and CCR SA
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between METISA and CCR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding METISA Metalrgica Timboense and CCR SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCR SA and METISA Metalrgica 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 METISA Metalrgica Timboense are associated (or correlated) with CCR SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCR SA has no effect on the direction of METISA Metalrgica i.e., METISA Metalrgica and CCR SA go up and down completely randomly.
Pair Corralation between METISA Metalrgica and CCR SA
Assuming the 90 days trading horizon METISA Metalrgica Timboense is expected to under-perform the CCR SA. In addition to that, METISA Metalrgica is 1.34 times more volatile than CCR SA. It trades about -0.03 of its total potential returns per unit of risk. CCR SA is currently generating about -0.01 per unit of volatility. If you would invest 1,327 in CCR SA on August 28, 2024 and sell it today you would lose (119.00) from holding CCR SA or give up 8.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
METISA Metalrgica Timboense vs. CCR SA
Performance |
| Timeline |
| METISA Metalrgica |
| CCR SA |
METISA Metalrgica and CCR SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METISA Metalrgica and CCR SA
The main advantage of trading using opposite METISA Metalrgica and CCR SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METISA Metalrgica position performs unexpectedly, CCR SA 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 CCR SA will offset losses from the drop in CCR SA's long position.| METISA Metalrgica vs. Fras le SA | METISA Metalrgica vs. Indstrias Romi SA | METISA Metalrgica vs. Clave Indices De | METISA Metalrgica vs. BTG Pactual Logstica |
| CCR SA vs. METISA Metalrgica Timboense | CCR SA vs. Lupatech SA | CCR SA vs. Recrusul SA | CCR SA vs. Fras le SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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