Correlation Between MetLife and Green Battery
Can any of the company-specific risk be diversified away by investing in both MetLife and Green Battery 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 Green Battery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Green Battery Minerals, you can compare the effects of market volatilities on MetLife and Green Battery 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 Green Battery. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Green Battery.
Diversification Opportunities for MetLife and Green Battery
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MetLife and Green is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Green Battery Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Battery Minerals 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 Green Battery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Battery Minerals has no effect on the direction of MetLife i.e., MetLife and Green Battery go up and down completely randomly.
Pair Corralation between MetLife and Green Battery
Considering the 90-day investment horizon MetLife is expected to generate 0.16 times more return on investment than Green Battery. However, MetLife is 6.32 times less risky than Green Battery. It trades about 0.04 of its potential returns per unit of risk. Green Battery Minerals is currently generating about 0.0 per unit of risk. If you would invest 6,829 in MetLife on September 4, 2024 and sell it today you would earn a total of 1,859 from holding MetLife or generate 27.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
MetLife vs. Green Battery Minerals
Performance |
| Timeline |
| MetLife |
| Green Battery Minerals |
MetLife and Green Battery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Green Battery
The main advantage of trading using opposite MetLife and Green Battery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Green Battery 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 Green Battery will offset losses from the drop in Green Battery's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| Green Battery vs. Class 1 Nickel | Green Battery vs. Pampa Metals | Green Battery vs. EcoGraf Limited | Green Battery vs. M3 Metals Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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