Correlation Between Metalliance and Maison Antoine

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

By analyzing existing cross correlation between Metalliance SA and Maison Antoine Baud, you can compare the effects of market volatilities on Metalliance and Maison Antoine 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 Maison Antoine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metalliance and Maison Antoine.

Diversification Opportunities for Metalliance and Maison Antoine

0.0

Correlation Coefficient

Metalliance  Maison Antoine

Pay attention - limited upside

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

Pair Corralation between Metalliance and Maison Antoine

If you would invest  18,500  in Maison Antoine Baud on October 10, 2024 and sell it today you would earn a total of  6,500  from holding Maison Antoine Baud or generate 35.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Metalliance SA  vs.  Maison Antoine Baud

Metalliance SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Metalliance SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Metalliance is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Maison Antoine Baud

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Maison Antoine Baud are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Maison Antoine reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Metalliance and Maison Antoine

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

The idea behind Metalliance SA and Maison Antoine Baud 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.