Correlation Between MetLife Preferred and Cheche Group
Can any of the company-specific risk be diversified away by investing in both MetLife Preferred and Cheche Group 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 Cheche Group 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 Cheche Group Class, you can compare the effects of market volatilities on MetLife Preferred and Cheche Group 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 Cheche Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife Preferred and Cheche Group.
Diversification Opportunities for MetLife Preferred and Cheche Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetLife and Cheche is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MetLife Preferred Stock and Cheche Group Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cheche Group Class 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 Cheche Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cheche Group Class has no effect on the direction of MetLife Preferred i.e., MetLife Preferred and Cheche Group go up and down completely randomly.
Pair Corralation between MetLife Preferred and Cheche Group
Assuming the 90 days trading horizon MetLife Preferred is expected to generate 39.33 times less return on investment than Cheche Group. But when comparing it to its historical volatility, MetLife Preferred Stock is 31.92 times less risky than Cheche Group. It trades about 0.02 of its potential returns per unit of risk. Cheche Group Class is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,037 in Cheche Group Class on September 1, 2024 and sell it today you would lose (952.00) from holding Cheche Group Class or give up 91.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.99% |
| Values | Daily Returns |
MetLife Preferred Stock vs. Cheche Group Class
Performance |
| Timeline |
| MetLife Preferred Stock |
| Cheche Group Class |
MetLife Preferred and Cheche Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife Preferred and Cheche Group
The main advantage of trading using opposite MetLife Preferred and Cheche Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife Preferred position performs unexpectedly, Cheche Group 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 Cheche Group will offset losses from the drop in Cheche Group's long position.| MetLife Preferred vs. MetLife Preferred Stock | MetLife Preferred vs. The Allstate | MetLife Preferred vs. The Allstate | MetLife Preferred vs. Wells Fargo |
| Cheche Group vs. ServiceNow | Cheche Group vs. Old Dominion Freight | Cheche Group vs. Procter Gamble | Cheche Group vs. Eastman Kodak Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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