Correlation Between Gentoo Media and Metacon AB

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

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

Diversification Opportunities for Gentoo Media and Metacon AB

-0.4

Correlation Coefficient

Gentoo Media  Metacon AB

Very good diversification

The 3 months correlation between Gentoo and Metacon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Gentoo Media and Metacon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metacon AB and Gentoo Media 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 Gentoo Media are associated (or correlated) with Metacon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metacon AB has no effect on the direction of Gentoo Media i.e., Gentoo Media and Metacon AB go up and down completely randomly.

Pair Corralation between Gentoo Media and Metacon AB

Assuming the 90 days trading horizon Gentoo Media is expected to under-perform the Metacon AB. But the stock apears to be less risky and, when comparing its historical volatility, Gentoo Media is 1.88 times less risky than Metacon AB. The stock trades about -0.13 of its potential returns per unit of risk. The Metacon AB is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Metacon AB on April 24, 2025 and sell it today you would earn a total of  14.00  from holding Metacon AB or generate 107.69% return on investment over 90 days.

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

Gentoo Media  vs.  Metacon AB

Gentoo Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gentoo Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Metacon AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Metacon AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Metacon AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gentoo Media and Metacon AB

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

The idea behind Gentoo Media and Metacon AB 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.