Correlation Between Metalliance and SBF 120

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Metalliance and SBF 120 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 Metalliance and SBF 120 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metalliance SA and SBF 120, you can compare the effects of market volatilities on Metalliance and SBF 120 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 Metalliance with a short position of SBF 120. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalliance and SBF 120.

Diversification Opportunities for Metalliance and SBF 120

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Metalliance and SBF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Metalliance SA and SBF 120 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBF 120 and Metalliance 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 Metalliance SA are associated (or correlated) with SBF 120. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBF 120 has no effect on the direction of Metalliance i.e., Metalliance and SBF 120 go up and down completely randomly.
    Optimize

Pair Corralation between Metalliance and SBF 120

If you would invest  850.00  in Metalliance SA on September 12, 2024 and sell it today you would earn a total of  0.00  from holding Metalliance SA or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Metalliance SA  vs.  SBF 120

 Performance 
       Timeline  

Metalliance and SBF 120 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Metalliance and SBF 120

The main advantage of trading using opposite Metalliance and SBF 120 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalliance position performs unexpectedly, SBF 120 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 SBF 120 will offset losses from the drop in SBF 120's long position.
The idea behind Metalliance SA and SBF 120 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Other Complementary Tools

Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Share Portfolio
Track or share privately all of your investments from the convenience of any device