Correlation Between Metropolitan Bank and Suntrust Home
Can any of the company-specific risk be diversified away by investing in both Metropolitan Bank and Suntrust Home 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 Suntrust Home 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 Suntrust Home Developers, you can compare the effects of market volatilities on Metropolitan Bank and Suntrust Home 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 Suntrust Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metropolitan Bank and Suntrust Home.
Diversification Opportunities for Metropolitan Bank and Suntrust Home
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Metropolitan and Suntrust is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Bank Trust and Suntrust Home Developers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntrust Home Developers 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 Suntrust Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntrust Home Developers has no effect on the direction of Metropolitan Bank i.e., Metropolitan Bank and Suntrust Home go up and down completely randomly.
Pair Corralation between Metropolitan Bank and Suntrust Home
Assuming the 90 days trading horizon Metropolitan Bank Trust is expected to under-perform the Suntrust Home. But the stock apears to be less risky and, when comparing its historical volatility, Metropolitan Bank Trust is 2.47 times less risky than Suntrust Home. The stock trades about -0.06 of its potential returns per unit of risk. The Suntrust Home Developers is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 65.00 in Suntrust Home Developers on May 26, 2025 and sell it today you would lose (3.00) from holding Suntrust Home Developers or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.65% |
| Values | Daily Returns |
Metropolitan Bank Trust vs. Suntrust Home Developers
Performance |
| Timeline |
| Metropolitan Bank Trust |
| Suntrust Home Developers |
Metropolitan Bank and Suntrust Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metropolitan Bank and Suntrust Home
The main advantage of trading using opposite Metropolitan Bank and Suntrust Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metropolitan Bank position performs unexpectedly, Suntrust Home 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 Suntrust Home will offset losses from the drop in Suntrust Home's long position.| Metropolitan Bank vs. Security Bank Corp | Metropolitan Bank vs. Crown Asia Chemicals | Metropolitan Bank vs. Manulife Financial Corp | Metropolitan Bank vs. Philippine Business Bank |
| Suntrust Home vs. ATN Holdings | Suntrust Home vs. Dizon Copper Silver | Suntrust Home vs. STN | Suntrust Home vs. GT Capital Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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