Correlation Between MetLife and Singular Genomics
Can any of the company-specific risk be diversified away by investing in both MetLife and Singular Genomics 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 Singular Genomics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Singular Genomics Systems, you can compare the effects of market volatilities on MetLife and Singular Genomics 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 Singular Genomics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Singular Genomics.
Diversification Opportunities for MetLife and Singular Genomics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MetLife and Singular is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Singular Genomics Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Genomics Systems 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 Singular Genomics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Genomics Systems has no effect on the direction of MetLife i.e., MetLife and Singular Genomics go up and down completely randomly.
Pair Corralation between MetLife and Singular Genomics
Considering the 90-day investment horizon MetLife is expected to generate 0.19 times more return on investment than Singular Genomics. However, MetLife is 5.37 times less risky than Singular Genomics. It trades about 0.04 of its potential returns per unit of risk. Singular Genomics Systems is currently generating about 0.01 per unit of risk. If you would invest 6,865 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,958 from holding MetLife or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetLife vs. Singular Genomics Systems
Performance |
| Timeline |
| MetLife |
| Singular Genomics Systems |
MetLife and Singular Genomics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Singular Genomics
The main advantage of trading using opposite MetLife and Singular Genomics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Singular Genomics 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 Singular Genomics will offset losses from the drop in Singular Genomics' long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| Singular Genomics vs. InfuSystems Holdings | Singular Genomics vs. Pro Dex | Singular Genomics vs. LeMaitre Vascular | Singular Genomics vs. Utah Medical Products |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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