Correlation Between BounceBit and MET

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

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

Diversification Opportunities for BounceBit and MET

0.0

Correlation Coefficient

BounceBit  MET

Pay attention - limited upside

The 3 months correlation between BounceBit and MET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BounceBit and MET in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MET and BounceBit 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 BounceBit 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 BounceBit i.e., BounceBit and MET go up and down completely randomly.

Pair Corralation between BounceBit and MET

If you would invest  11.00  in BounceBit on May 5, 2025 and sell it today you would lose (1.29) from holding BounceBit or give up 11.73% of portfolio value over 90 days.

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

BounceBit  vs.  MET

BounceBit

Risk-Adjusted Performance

Very Weak

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

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 BounceBit and MET

The main advantage of trading using opposite BounceBit and MET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BounceBit 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 BounceBit 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.