Correlation Between MetLife and Green
Can any of the company-specific risk be diversified away by investing in both MetLife and Green 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 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Green And Hill, you can compare the effects of market volatilities on MetLife and Green 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Green.
Diversification Opportunities for MetLife and Green
Very good diversification
The 3 months correlation between MetLife and Green is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Green And Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green And Hill 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. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green And Hill has no effect on the direction of MetLife i.e., MetLife and Green go up and down completely randomly.
Pair Corralation between MetLife and Green
If you would invest 6,296 in MetLife on September 4, 2024 and sell it today you would earn a total of 2,276 from holding MetLife or generate 36.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MetLife vs. Green And Hill
Performance |
| Timeline |
| MetLife |
| Green And Hill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MetLife and Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Green
The main advantage of trading using opposite MetLife and Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Green 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 will offset losses from the drop in Green's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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