Correlation Between Ocean Glass and Metro Systems
Can any of the company-specific risk be diversified away by investing in both Ocean Glass and Metro Systems 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 Ocean Glass and Metro Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Glass Public and Metro Systems, you can compare the effects of market volatilities on Ocean Glass and Metro Systems 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 Ocean Glass with a short position of Metro Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Glass and Metro Systems.
Diversification Opportunities for Ocean Glass and Metro Systems
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ocean and Metro is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Glass Public and Metro Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Systems and Ocean Glass 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 Ocean Glass Public are associated (or correlated) with Metro Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Systems has no effect on the direction of Ocean Glass i.e., Ocean Glass and Metro Systems go up and down completely randomly.
Pair Corralation between Ocean Glass and Metro Systems
Assuming the 90 days trading horizon Ocean Glass Public is expected to under-perform the Metro Systems. In addition to that, Ocean Glass is 2.01 times more volatile than Metro Systems. It trades about -0.03 of its total potential returns per unit of risk. Metro Systems is currently generating about 0.0 per unit of volatility. If you would invest 785.00 in Metro Systems on October 7, 2024 and sell it today you would earn a total of 0.00 from holding Metro Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Ocean Glass Public vs. Metro Systems
Performance |
| Timeline |
| Ocean Glass Public |
| Metro Systems |
Ocean Glass and Metro Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Glass and Metro Systems
The main advantage of trading using opposite Ocean Glass and Metro Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Glass position performs unexpectedly, Metro Systems 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 Metro Systems will offset losses from the drop in Metro Systems' long position.| Ocean Glass vs. Peoples Garment Public | Ocean Glass vs. LPN Development Public | Ocean Glass vs. Nawarat Patanakarn Public | Ocean Glass vs. President Bakery Public |
| Metro Systems vs. MFEC PCL | Metro Systems vs. Internet Thailand Public | Metro Systems vs. Hana Microelectronics Public | Metro Systems vs. SiS Distribution Public |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |