Correlation Between Mask Investments and Metropolis Healthcare

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

By analyzing existing cross correlation between Mask Investments Limited and Metropolis Healthcare Limited, you can compare the effects of market volatilities on Mask Investments and Metropolis Healthcare 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 Mask Investments with a short position of Metropolis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mask Investments and Metropolis Healthcare.

Diversification Opportunities for Mask Investments and Metropolis Healthcare

0.12

Correlation Coefficient

Mask Investments  Metropolis Healthcare

Average diversification

The 3 months correlation between Mask and Metropolis is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mask Investments Limited and Metropolis Healthcare Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolis Healthcare and Mask Investments 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 Mask Investments Limited are associated (or correlated) with Metropolis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolis Healthcare has no effect on the direction of Mask Investments i.e., Mask Investments and Metropolis Healthcare go up and down completely randomly.

Pair Corralation between Mask Investments and Metropolis Healthcare

Assuming the 90 days trading horizon Mask Investments is expected to generate 60.57 times less return on investment than Metropolis Healthcare. In addition to that, Mask Investments is 1.56 times more volatile than Metropolis Healthcare Limited. It trades about 0.0 of its total potential returns per unit of risk. Metropolis Healthcare Limited is currently generating about 0.1 per unit of volatility. If you would invest  175,520  in Metropolis Healthcare Limited on April 23, 2025 and sell it today you would earn a total of  22,640  from holding Metropolis Healthcare Limited or generate 12.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Mask Investments Limited  vs.  Metropolis Healthcare Limited

Mask Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mask Investments Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Mask Investments is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Metropolis Healthcare

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Metropolis Healthcare Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, Metropolis Healthcare displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mask Investments and Metropolis Healthcare

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

The idea behind Mask Investments Limited and Metropolis Healthcare Limited 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.