Correlation Between Suntrust Home and Metro Retail
Can any of the company-specific risk be diversified away by investing in both Suntrust Home and Metro Retail 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 Suntrust Home and Metro Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntrust Home Developers and Metro Retail Stores, you can compare the effects of market volatilities on Suntrust Home and Metro Retail 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 Suntrust Home with a short position of Metro Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntrust Home and Metro Retail.
Diversification Opportunities for Suntrust Home and Metro Retail
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Suntrust and Metro is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Suntrust Home Developers and Metro Retail Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Retail Stores and Suntrust Home 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 Suntrust Home Developers are associated (or correlated) with Metro Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Retail Stores has no effect on the direction of Suntrust Home i.e., Suntrust Home and Metro Retail go up and down completely randomly.
Pair Corralation between Suntrust Home and Metro Retail
Assuming the 90 days trading horizon Suntrust Home Developers is expected to under-perform the Metro Retail. In addition to that, Suntrust Home is 1.67 times more volatile than Metro Retail Stores. It trades about -0.02 of its total potential returns per unit of risk. Metro Retail Stores is currently generating about -0.02 per unit of volatility. If you would invest 122.00 in Metro Retail Stores on August 29, 2024 and sell it today you would lose (1.00) from holding Metro Retail Stores or give up 0.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Suntrust Home Developers vs. Metro Retail Stores
Performance |
| Timeline |
| Suntrust Home Developers |
| Metro Retail Stores |
Suntrust Home and Metro Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntrust Home and Metro Retail
The main advantage of trading using opposite Suntrust Home and Metro Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntrust Home position performs unexpectedly, Metro Retail 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 Retail will offset losses from the drop in Metro Retail's long position.| Suntrust Home vs. Jollibee Foods Corp | Suntrust Home vs. Manila Mining Corp | Suntrust Home vs. Apex Mining Co | Suntrust Home vs. Crown Asia Chemicals |
| Metro Retail vs. Allhome Corp | Metro Retail vs. Jollibee Foods Corp | Metro Retail vs. LFM Properties Corp | Metro Retail vs. Altus Property Ventures |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |