Correlation Between METISA Metalrgica and Banco Pine
Can any of the company-specific risk be diversified away by investing in both METISA Metalrgica and Banco Pine 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 Banco Pine 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 Banco Pine SA, you can compare the effects of market volatilities on METISA Metalrgica and Banco Pine 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 Banco Pine. Check out your portfolio center. Please also check ongoing floating volatility patterns of METISA Metalrgica and Banco Pine.
Diversification Opportunities for METISA Metalrgica and Banco Pine
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between METISA and Banco is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding METISA Metalrgica Timboense and Banco Pine SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Pine 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 Banco Pine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Pine SA has no effect on the direction of METISA Metalrgica i.e., METISA Metalrgica and Banco Pine go up and down completely randomly.
Pair Corralation between METISA Metalrgica and Banco Pine
Assuming the 90 days trading horizon METISA Metalrgica Timboense is expected to generate 1.11 times more return on investment than Banco Pine. However, METISA Metalrgica is 1.11 times more volatile than Banco Pine SA. It trades about 0.07 of its potential returns per unit of risk. Banco Pine SA is currently generating about -0.02 per unit of risk. If you would invest 3,415 in METISA Metalrgica Timboense on October 25, 2024 and sell it today you would earn a total of 305.00 from holding METISA Metalrgica Timboense or generate 8.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
METISA Metalrgica Timboense vs. Banco Pine SA
Performance |
| Timeline |
| METISA Metalrgica |
| Banco Pine SA |
METISA Metalrgica and Banco Pine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METISA Metalrgica and Banco Pine
The main advantage of trading using opposite METISA Metalrgica and Banco Pine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METISA Metalrgica position performs unexpectedly, Banco Pine 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 Banco Pine will offset losses from the drop in Banco Pine's long position.| METISA Metalrgica vs. Schulz SA | METISA Metalrgica vs. Fras le SA | METISA Metalrgica vs. PBG SA | METISA Metalrgica vs. Springs Global Participaes |
| Banco Pine vs. Datadog, | Banco Pine vs. METISA Metalrgica Timboense | Banco Pine vs. Costco Wholesale | Banco Pine vs. Verizon Communications |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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