Correlation Between CeoTronics and Meta Financial

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

By analyzing existing cross correlation between CeoTronics AG and Meta Financial Group, you can compare the effects of market volatilities on CeoTronics and Meta Financial 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 CeoTronics with a short position of Meta Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CeoTronics and Meta Financial.

Diversification Opportunities for CeoTronics and Meta Financial

0.39

Correlation Coefficient

CeoTronics  Meta Financial

Weak diversification

The 3 months correlation between CeoTronics and Meta is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding CeoTronics AG and Meta Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Financial Group and CeoTronics 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 CeoTronics AG are associated (or correlated) with Meta Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Financial Group has no effect on the direction of CeoTronics i.e., CeoTronics and Meta Financial go up and down completely randomly.

Pair Corralation between CeoTronics and Meta Financial

Assuming the 90 days trading horizon CeoTronics AG is expected to under-perform the Meta Financial. In addition to that, CeoTronics is 2.31 times more volatile than Meta Financial Group. It trades about -0.03 of its total potential returns per unit of risk. Meta Financial Group is currently generating about 0.05 per unit of volatility. If you would invest  6,796  in Meta Financial Group on April 23, 2025 and sell it today you would earn a total of  304.00  from holding Meta Financial Group or generate 4.47% return on investment over 90 days.

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

CeoTronics AG  vs.  Meta Financial Group

CeoTronics AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days CeoTronics AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, CeoTronics is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Meta Financial Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Meta Financial Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Meta Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CeoTronics and Meta Financial

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

The idea behind CeoTronics AG and Meta Financial Group 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..