Correlation Between Metlen Energy and AFC Energy
Can any of the company-specific risk be diversified away by investing in both Metlen Energy and AFC Energy 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 Metlen Energy and AFC Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metlen Energy Metals and AFC Energy plc, you can compare the effects of market volatilities on Metlen Energy and AFC Energy 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 Metlen Energy with a short position of AFC Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metlen Energy and AFC Energy.
Diversification Opportunities for Metlen Energy and AFC Energy
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Metlen and AFC is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Metlen Energy Metals and AFC Energy plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFC Energy plc and Metlen Energy 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 Metlen Energy Metals are associated (or correlated) with AFC Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFC Energy plc has no effect on the direction of Metlen Energy i.e., Metlen Energy and AFC Energy go up and down completely randomly.
Pair Corralation between Metlen Energy and AFC Energy
Assuming the 90 days trading horizon Metlen Energy Metals is expected to under-perform the AFC Energy. But the stock apears to be less risky and, when comparing its historical volatility, Metlen Energy Metals is 2.33 times less risky than AFC Energy. The stock trades about -0.07 of its potential returns per unit of risk. The AFC Energy plc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in AFC Energy plc on September 7, 2025 and sell it today you would earn a total of 54.00 from holding AFC Energy plc or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 35.6% |
| Values | Daily Returns |
Metlen Energy Metals vs. AFC Energy plc
Performance |
| Timeline |
| Metlen Energy Metals |
| AFC Energy plc |
Metlen Energy and AFC Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metlen Energy and AFC Energy
The main advantage of trading using opposite Metlen Energy and AFC Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metlen Energy position performs unexpectedly, AFC Energy 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 AFC Energy will offset losses from the drop in AFC Energy's long position.| Metlen Energy vs. Givaudan SA | Metlen Energy vs. Antofagasta PLC | Metlen Energy vs. Clariant AG | Metlen Energy vs. EVRAZ plc |
| AFC Energy vs. Critical Metals Plc | AFC Energy vs. Europa Metals | AFC Energy vs. Metlen Energy Metals | AFC Energy vs. Cornish Metals |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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