Correlation Between MetLife and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both MetLife and Agrify Corp 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 and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Agrify Corp, you can compare the effects of market volatilities on MetLife and Agrify Corp 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 with a short position of Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Agrify Corp.
Diversification Opportunities for MetLife and Agrify Corp
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MetLife and Agrify is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and MetLife 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 are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of MetLife i.e., MetLife and Agrify Corp go up and down completely randomly.
Pair Corralation between MetLife and Agrify Corp
Considering the 90-day investment horizon MetLife is expected to generate 5.57 times less return on investment than Agrify Corp. But when comparing it to its historical volatility, MetLife is 7.66 times less risky than Agrify Corp. It trades about 0.04 of its potential returns per unit of risk. Agrify Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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 |
MetLife vs. Agrify Corp
Performance |
| Timeline |
| MetLife |
| Agrify Corp |
MetLife and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Agrify Corp
The main advantage of trading using opposite MetLife and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Agrify Corp 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 Agrify Corp will offset losses from the drop in Agrify Corp's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |