Correlation Between MetLife and Morien Resources
Can any of the company-specific risk be diversified away by investing in both MetLife and Morien Resources 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 Morien Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Morien Resources Corp, you can compare the effects of market volatilities on MetLife and Morien Resources 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 Morien Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Morien Resources.
Diversification Opportunities for MetLife and Morien Resources
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetLife and Morien is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Morien Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morien Resources 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 Morien Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morien Resources Corp has no effect on the direction of MetLife i.e., MetLife and Morien Resources go up and down completely randomly.
Pair Corralation between MetLife and Morien Resources
Considering the 90-day investment horizon MetLife is expected to generate 0.19 times more return on investment than Morien Resources. However, MetLife is 5.23 times less risky than Morien Resources. It trades about 0.11 of its potential returns per unit of risk. Morien Resources Corp is currently generating about 0.01 per unit of risk. If you would invest 5,149 in MetLife on September 4, 2024 and sell it today you would earn a total of 3,539 from holding MetLife or generate 68.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.93% |
| Values | Daily Returns |
MetLife vs. Morien Resources Corp
Performance |
| Timeline |
| MetLife |
| Morien Resources Corp |
MetLife and Morien Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Morien Resources
The main advantage of trading using opposite MetLife and Morien Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Morien Resources 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 Morien Resources will offset losses from the drop in Morien Resources' long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| Morien Resources vs. Adaro Energy Tbk | Morien Resources vs. Alliance Resource Partners | Morien Resources vs. Brera Holdings PLC | Morien Resources vs. Jackson Financial |
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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