Correlation Between MetLife Preferred and Ping An
Can any of the company-specific risk be diversified away by investing in both MetLife Preferred and Ping An 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 MetLife Preferred and Ping An into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife Preferred Stock and Ping An Insurance, you can compare the effects of market volatilities on MetLife Preferred and Ping An 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 MetLife Preferred with a short position of Ping An. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife Preferred and Ping An.
Diversification Opportunities for MetLife Preferred and Ping An
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MetLife and Ping is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MetLife Preferred Stock and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance and MetLife Preferred 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 MetLife Preferred Stock are associated (or correlated) with Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of MetLife Preferred i.e., MetLife Preferred and Ping An go up and down completely randomly.
Pair Corralation between MetLife Preferred and Ping An
Assuming the 90 days trading horizon MetLife Preferred Stock is expected to generate 0.26 times more return on investment than Ping An. However, MetLife Preferred Stock is 3.91 times less risky than Ping An. It trades about 0.08 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.01 per unit of risk. If you would invest 1,853 in MetLife Preferred Stock on August 24, 2024 and sell it today you would earn a total of 600.00 from holding MetLife Preferred Stock or generate 32.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MetLife Preferred Stock vs. Ping An Insurance
Performance |
| Timeline |
| MetLife Preferred Stock |
| Ping An Insurance |
MetLife Preferred and Ping An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife Preferred and Ping An
The main advantage of trading using opposite MetLife Preferred and Ping An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife Preferred position performs unexpectedly, Ping An 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 Ping An will offset losses from the drop in Ping An's long position.| MetLife Preferred vs. Brighthouse Financial | MetLife Preferred vs. Brighthouse Financial | MetLife Preferred vs. MetLife Preferred Stock | MetLife Preferred vs. Brighthouse Financial |
| Ping An vs. AIA Group | Ping An vs. Jackson Financial | Ping An vs. Sanlam Ltd PK | Ping An vs. CNO Financial Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |