Correlation Between Metrovacesa and Mercal Inmuebles
Can any of the company-specific risk be diversified away by investing in both Metrovacesa and Mercal Inmuebles 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 Mercal Inmuebles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrovacesa SA and Mercal Inmuebles Socimi, you can compare the effects of market volatilities on Metrovacesa and Mercal Inmuebles 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 Mercal Inmuebles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrovacesa and Mercal Inmuebles.
Diversification Opportunities for Metrovacesa and Mercal Inmuebles
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metrovacesa and Mercal is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Metrovacesa SA and Mercal Inmuebles Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercal Inmuebles Socimi 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 Mercal Inmuebles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercal Inmuebles Socimi has no effect on the direction of Metrovacesa i.e., Metrovacesa and Mercal Inmuebles go up and down completely randomly.
Pair Corralation between Metrovacesa and Mercal Inmuebles
Assuming the 90 days trading horizon Metrovacesa SA is expected to generate 0.54 times more return on investment than Mercal Inmuebles. However, Metrovacesa SA is 1.84 times less risky than Mercal Inmuebles. It trades about 0.07 of its potential returns per unit of risk. Mercal Inmuebles Socimi is currently generating about 0.04 per unit of risk. If you would invest 593.00 in Metrovacesa SA on August 24, 2024 and sell it today you would earn a total of 283.00 from holding Metrovacesa SA or generate 47.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.04% |
| Values | Daily Returns |
Metrovacesa SA vs. Mercal Inmuebles Socimi
Performance |
| Timeline |
| Metrovacesa SA |
| Mercal Inmuebles Socimi |
Metrovacesa and Mercal Inmuebles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrovacesa and Mercal Inmuebles
The main advantage of trading using opposite Metrovacesa and Mercal Inmuebles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrovacesa position performs unexpectedly, Mercal Inmuebles 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 Mercal Inmuebles will offset losses from the drop in Mercal Inmuebles' long position.| Metrovacesa vs. NH Hoteles | Metrovacesa vs. Fomento de Construcciones | Metrovacesa vs. Inmobiliaria Colonial SA | Metrovacesa vs. Aedas Homes SL |
| Mercal Inmuebles vs. Lar Espana Real | Mercal Inmuebles vs. Quonia SOCIMI SA | Mercal Inmuebles vs. Metrovacesa SA | Mercal Inmuebles vs. Elecnor 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |