Correlation Between Metropolitan Bank and Apex Mining

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

By analyzing existing cross correlation between Metropolitan Bank Trust and Apex Mining Co, you can compare the effects of market volatilities on Metropolitan Bank and Apex Mining 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 Metropolitan Bank with a short position of Apex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Bank and Apex Mining.

Diversification Opportunities for Metropolitan Bank and Apex Mining

0.13

Correlation Coefficient

Metropolitan Bank  Apex Mining

Average diversification

The 3 months correlation between Metropolitan and Apex is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Bank Trust and Apex Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Mining and Metropolitan Bank 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 Metropolitan Bank Trust are associated (or correlated) with Apex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Mining has no effect on the direction of Metropolitan Bank i.e., Metropolitan Bank and Apex Mining go up and down completely randomly.

Pair Corralation between Metropolitan Bank and Apex Mining

Assuming the 90 days trading horizon Metropolitan Bank Trust is expected to generate 0.34 times more return on investment than Apex Mining. However, Metropolitan Bank Trust is 2.95 times less risky than Apex Mining. It trades about -0.18 of its potential returns per unit of risk. Apex Mining Co is currently generating about -0.13 per unit of risk. If you would invest  7,455  in Metropolitan Bank Trust on April 5, 2025 and sell it today you would lose (305.00) from holding Metropolitan Bank Trust or give up 4.09% of portfolio value over 90 days.

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

Metropolitan Bank Trust  vs.  Apex Mining Co

Metropolitan Bank Trust

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Metropolitan Bank Trust are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Metropolitan Bank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Apex Mining

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apex Mining Co are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Apex Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Metropolitan Bank and Apex Mining

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

The idea behind Metropolitan Bank Trust and Apex Mining Co 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.