Correlation Between AXIS Capital and MetLife Preferred
Can any of the company-specific risk be diversified away by investing in both AXIS Capital and MetLife Preferred 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 AXIS Capital and MetLife Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXIS Capital Holdings and MetLife Preferred Stock, you can compare the effects of market volatilities on AXIS Capital and MetLife Preferred 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 AXIS Capital with a short position of MetLife Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXIS Capital and MetLife Preferred.
Diversification Opportunities for AXIS Capital and MetLife Preferred
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between AXIS and MetLife is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding AXIS Capital Holdings and MetLife Preferred Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife Preferred Stock and AXIS Capital 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 AXIS Capital Holdings are associated (or correlated) with MetLife Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife Preferred Stock has no effect on the direction of AXIS Capital i.e., AXIS Capital and MetLife Preferred go up and down completely randomly.
Pair Corralation between AXIS Capital and MetLife Preferred
Considering the 90-day investment horizon AXIS Capital Holdings is expected to generate 2.17 times more return on investment than MetLife Preferred. However, AXIS Capital is 2.17 times more volatile than MetLife Preferred Stock. It trades about 0.13 of its potential returns per unit of risk. MetLife Preferred Stock is currently generating about -0.13 per unit of risk. If you would invest 9,081 in AXIS Capital Holdings on November 27, 2024 and sell it today you would earn a total of 363.00 from holding AXIS Capital Holdings or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
AXIS Capital Holdings vs. MetLife Preferred Stock
Performance |
| Timeline |
| AXIS Capital Holdings |
| MetLife Preferred Stock |
AXIS Capital and MetLife Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXIS Capital and MetLife Preferred
The main advantage of trading using opposite AXIS Capital and MetLife Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXIS Capital position performs unexpectedly, MetLife Preferred 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 Preferred will offset losses from the drop in MetLife Preferred's long position.| AXIS Capital vs. Assured Guaranty | AXIS Capital vs. Enact Holdings | AXIS Capital vs. NMI Holdings | AXIS Capital vs. Radian Group |
| MetLife Preferred vs. MetLife Preferred Stock | MetLife Preferred vs. The Allstate | MetLife Preferred vs. The Allstate | MetLife Preferred vs. Wells Fargo |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |