Correlation Between MetLife and Luduson G
Can any of the company-specific risk be diversified away by investing in both MetLife and Luduson G 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 Luduson G into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Luduson G, you can compare the effects of market volatilities on MetLife and Luduson G 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 Luduson G. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Luduson G.
Diversification Opportunities for MetLife and Luduson G
Pay attention - limited upside
The 3 months correlation between MetLife and Luduson is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Luduson G in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luduson G 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 Luduson G. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luduson G has no effect on the direction of MetLife i.e., MetLife and Luduson G go up and down completely randomly.
Pair Corralation between MetLife and Luduson G
Considering the 90-day investment horizon MetLife is expected to generate 0.07 times more return on investment than Luduson G. However, MetLife is 13.39 times less risky than Luduson G. It trades about 0.09 of its potential returns per unit of risk. Luduson G is currently generating about -0.07 per unit of risk. If you would invest 7,494 in MetLife on September 12, 2024 and sell it today you would earn a total of 680.00 from holding MetLife or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetLife vs. Luduson G
Performance |
| Timeline |
| MetLife |
| Luduson G |
MetLife and Luduson G Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Luduson G
The main advantage of trading using opposite MetLife and Luduson G positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Luduson G 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 Luduson G will offset losses from the drop in Luduson G's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| Luduson G vs. Roku Inc | Luduson G vs. SNM Gobal Holdings | Luduson G vs. Seven Arts Entertainment | Luduson G vs. All For One |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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