Correlation Between Metrovacesa and Asturiana
Can any of the company-specific risk be diversified away by investing in both Metrovacesa and Asturiana 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 Metrovacesa and Asturiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrovacesa SA and Asturiana de Laminados, you can compare the effects of market volatilities on Metrovacesa and Asturiana 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 Asturiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrovacesa and Asturiana.
Diversification Opportunities for Metrovacesa and Asturiana
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Metrovacesa and Asturiana is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Metrovacesa SA and Asturiana de Laminados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asturiana de Laminados 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 Asturiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asturiana de Laminados has no effect on the direction of Metrovacesa i.e., Metrovacesa and Asturiana go up and down completely randomly.
Pair Corralation between Metrovacesa and Asturiana
If you would invest 870.00 in Metrovacesa SA on September 13, 2024 and sell it today you would earn a total of 37.00 from holding Metrovacesa SA or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrovacesa SA vs. Asturiana de Laminados
Performance |
| Timeline |
| Metrovacesa SA |
| Asturiana de Laminados |
Metrovacesa and Asturiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrovacesa and Asturiana
The main advantage of trading using opposite Metrovacesa and Asturiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrovacesa position performs unexpectedly, Asturiana 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 Asturiana will offset losses from the drop in Asturiana's long position.| Metrovacesa vs. Neinor Homes SLU | Metrovacesa vs. Merlin Properties SOCIMI | Metrovacesa vs. Atresmedia Corporacin de |
| Asturiana vs. Metrovacesa SA | Asturiana vs. Elecnor SA | Asturiana vs. Mapfre | Asturiana vs. Tander Inversiones SOCIMI |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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