Correlation Between AEON and MET

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

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

Diversification Opportunities for AEON and MET

0.0

Correlation Coefficient

AEON  MET

Pay attention - limited upside

The 3 months correlation between AEON and MET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AEON and MET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MET and AEON 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 AEON are associated (or correlated) with MET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MET has no effect on the direction of AEON i.e., AEON and MET go up and down completely randomly.

Pair Corralation between AEON and MET

If you would invest  26.00  in AEON on May 7, 2025 and sell it today you would earn a total of  2.00  from holding AEON or generate 7.69% return on investment over 90 days.

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

AEON  vs.  MET

AEON

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AEON are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, AEON may actually be approaching a critical reversion point that can send shares even higher in September 2025.

MET

Risk-Adjusted Performance

Very Weak

Over the last 90 days MET has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MET is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AEON and MET

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

The idea behind AEON and MET 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.