Correlation Between MetLife and Living Cell
Can any of the company-specific risk be diversified away by investing in both MetLife and Living Cell 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 Living Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Living Cell Technologies, you can compare the effects of market volatilities on MetLife and Living Cell 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 Living Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Living Cell.
Diversification Opportunities for MetLife and Living Cell
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MetLife and Living is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Living Cell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Living Cell Technologies 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 Living Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Living Cell Technologies has no effect on the direction of MetLife i.e., MetLife and Living Cell go up and down completely randomly.
Pair Corralation between MetLife and Living Cell
If you would invest 7,801 in MetLife on September 4, 2024 and sell it today you would earn a total of 887.00 from holding MetLife or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetLife vs. Living Cell Technologies
Performance |
| Timeline |
| MetLife |
| Living Cell Technologies |
MetLife and Living Cell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Living Cell
The main advantage of trading using opposite MetLife and Living Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Living Cell 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 Living Cell will offset losses from the drop in Living Cell's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| Living Cell vs. Therapeutic Solutions International | Living Cell vs. Alpha Cognition | Living Cell vs. Vg Life Sciences | Living Cell vs. Adagene |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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