Correlation Between Metalpha Technology and Comscore

Can any of the company-specific risk be diversified away by investing in both Metalpha Technology and Comscore 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 Metalpha Technology and Comscore into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Metalpha Technology Holding and Comscore, you can compare the effects of market volatilities on Metalpha Technology and Comscore 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 Metalpha Technology with a short position of Comscore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalpha Technology and Comscore.

Diversification Opportunities for Metalpha Technology and Comscore

-0.66

Correlation Coefficient

Metalpha Technology  Comscore

Excellent diversification

The 3 months correlation between Metalpha and Comscore is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Metalpha Technology Holding and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore and Metalpha Technology 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 Metalpha Technology Holding are associated (or correlated) with Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Metalpha Technology i.e., Metalpha Technology and Comscore go up and down completely randomly.

Pair Corralation between Metalpha Technology and Comscore

Given the investment horizon of 90 days Metalpha Technology Holding is expected to generate 0.94 times more return on investment than Comscore. However, Metalpha Technology Holding is 1.06 times less risky than Comscore. It trades about 0.02 of its potential returns per unit of risk. Comscore is currently generating about -0.01 per unit of risk. If you would invest  101.00  in Metalpha Technology Holding on August 31, 2024 and sell it today you would lose (11.00) from holding Metalpha Technology Holding or give up 10.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Metalpha Technology Holding  vs.  Comscore

Metalpha Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metalpha Technology Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Etf's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the Etf traders.

Comscore

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Comscore are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Comscore reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Metalpha Technology and Comscore

The main advantage of trading using opposite Metalpha Technology and Comscore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metalpha Technology position performs unexpectedly, Comscore 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 Comscore will offset losses from the drop in Comscore's long position.

The idea behind Metalpha Technology Holding and Comscore 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.