Correlation Between Agrify Corp and MetLife
Can any of the company-specific risk be diversified away by investing in both Agrify Corp and MetLife 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 Agrify Corp and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrify Corp and MetLife, you can compare the effects of market volatilities on Agrify Corp and MetLife 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 Agrify Corp with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrify Corp and MetLife.
Diversification Opportunities for Agrify Corp and MetLife
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agrify and MetLife is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Agrify Corp and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Agrify Corp 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 Agrify Corp are associated (or correlated) with MetLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife has no effect on the direction of Agrify Corp i.e., Agrify Corp and MetLife go up and down completely randomly.
Pair Corralation between Agrify Corp and MetLife
Given the investment horizon of 90 days Agrify Corp is expected to generate 7.66 times more return on investment than MetLife. However, Agrify Corp is 7.66 times more volatile than MetLife. It trades about 0.03 of its potential returns per unit of risk. MetLife is currently generating about 0.04 per unit of risk. If you would invest 24,000 in Agrify Corp on September 3, 2024 and sell it today you would lose (18,325) from holding Agrify Corp or give up 76.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrify Corp vs. MetLife
Performance |
| Timeline |
| Agrify Corp |
| MetLife |
Agrify Corp and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrify Corp and MetLife
The main advantage of trading using opposite Agrify Corp and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrify Corp position performs unexpectedly, MetLife 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 MetLife will offset losses from the drop in MetLife's long position.| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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