Correlation Between Metalpha Technology and Ready Capital

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

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

Diversification Opportunities for Metalpha Technology and Ready Capital

-0.14

Correlation Coefficient

Metalpha Technology  Ready Capital

Good diversification

The 3 months correlation between Metalpha and Ready is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Metalpha Technology Holding and Ready Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ready Capital and Metalpha Technology 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 Metalpha Technology Holding are associated (or correlated) with Ready Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ready Capital has no effect on the direction of Metalpha Technology i.e., Metalpha Technology and Ready Capital go up and down completely randomly.

Pair Corralation between Metalpha Technology and Ready Capital

Given the investment horizon of 90 days Metalpha Technology Holding is expected to generate 8.24 times more return on investment than Ready Capital. However, Metalpha Technology is 8.24 times more volatile than Ready Capital. It trades about 0.06 of its potential returns per unit of risk. Ready Capital is currently generating about 0.11 per unit of risk. If you would invest  321.00  in Metalpha Technology Holding on July 1, 2025 and sell it today you would earn a total of  45.00  from holding Metalpha Technology Holding or generate 14.02% return on investment over 90 days.

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

Metalpha Technology Holding  vs.  Ready Capital

Metalpha Technology

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Metalpha Technology Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Metalpha Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Ready Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ready Capital are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Ready Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Metalpha Technology and Ready Capital

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

The idea behind Metalpha Technology Holding and Ready Capital 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.