Correlation Between GAIA and MET

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

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

Diversification Opportunities for GAIA and MET

0.0

Correlation Coefficient

GAIA  MET

Pay attention - limited upside

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

Pair Corralation between GAIA and MET

If you would invest  15.00  in MET on May 7, 2025 and sell it today you would earn a total of  0.00  from holding MET or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	60.94%
Values	Daily Returns

GAIA  vs.  MET

GAIA

Risk-Adjusted Performance

Very Weak

Over the last 90 days GAIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for GAIA 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 GAIA and MET

The main advantage of trading using opposite GAIA and MET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAIA 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 GAIA 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.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.