Correlation Between Metrovacesa and BK Variable
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By analyzing existing cross correlation between Metrovacesa SA and BK Variable Internacional, you can compare the effects of market volatilities on Metrovacesa and BK Variable 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 Metrovacesa with a short position of BK Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrovacesa and BK Variable.
Diversification Opportunities for Metrovacesa and BK Variable
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metrovacesa and 0P0000120T is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Metrovacesa SA and BK Variable Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK Variable Internacional and Metrovacesa 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 Metrovacesa SA are associated (or correlated) with BK Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK Variable Internacional has no effect on the direction of Metrovacesa i.e., Metrovacesa and BK Variable go up and down completely randomly.
Pair Corralation between Metrovacesa and BK Variable
Assuming the 90 days trading horizon Metrovacesa is expected to generate 1.71 times less return on investment than BK Variable. In addition to that, Metrovacesa is 1.14 times more volatile than BK Variable Internacional. It trades about 0.01 of its total potential returns per unit of risk. BK Variable Internacional is currently generating about 0.02 per unit of volatility. If you would invest 1,706 in BK Variable Internacional on September 3, 2024 and sell it today you would earn a total of 30.00 from holding BK Variable Internacional or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Metrovacesa SA vs. BK Variable Internacional
Performance |
| Timeline |
| Metrovacesa SA |
| BK Variable Internacional |
Metrovacesa and BK Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrovacesa and BK Variable
The main advantage of trading using opposite Metrovacesa and BK Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrovacesa position performs unexpectedly, BK Variable 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 BK Variable will offset losses from the drop in BK Variable's long position.| Metrovacesa vs. Neinor Homes SLU | Metrovacesa vs. Merlin Properties SOCIMI | Metrovacesa vs. Atresmedia Corporacin de |
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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.
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