Correlation Between MetLife and Guskin Gold
Can any of the company-specific risk be diversified away by investing in both MetLife and Guskin Gold 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 Guskin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Guskin Gold Corp, you can compare the effects of market volatilities on MetLife and Guskin Gold 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 Guskin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Guskin Gold.
Diversification Opportunities for MetLife and Guskin Gold
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetLife and Guskin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Guskin Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guskin Gold 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 Guskin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guskin Gold Corp has no effect on the direction of MetLife i.e., MetLife and Guskin Gold go up and down completely randomly.
Pair Corralation between MetLife and Guskin Gold
If you would invest 8,177 in MetLife on September 12, 2024 and sell it today you would lose (3.00) from holding MetLife or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MetLife vs. Guskin Gold Corp
Performance |
| Timeline |
| MetLife |
| Guskin Gold Corp |
MetLife and Guskin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Guskin Gold
The main advantage of trading using opposite MetLife and Guskin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Guskin Gold 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 Guskin Gold will offset losses from the drop in Guskin Gold's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| Guskin Gold vs. Revival Gold | Guskin Gold vs. Galiano Gold | Guskin Gold vs. US Gold Corp | Guskin Gold vs. HUMANA INC |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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