Correlation Between MetLife and Prologis
Can any of the company-specific risk be diversified away by investing in both MetLife and Prologis 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 Prologis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Prologis, you can compare the effects of market volatilities on MetLife and Prologis 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 Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Prologis.
Diversification Opportunities for MetLife and Prologis
Very good diversification
The 3 months correlation between MetLife and Prologis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis 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 Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of MetLife i.e., MetLife and Prologis go up and down completely randomly.
Pair Corralation between MetLife and Prologis
Considering the 90-day investment horizon MetLife is expected to generate 1.2 times more return on investment than Prologis. However, MetLife is 1.2 times more volatile than Prologis. It trades about 0.3 of its potential returns per unit of risk. Prologis is currently generating about 0.01 per unit of risk. 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 | 95.24% |
| Values | Daily Returns |
MetLife vs. Prologis
Performance |
| Timeline |
| MetLife |
| Prologis |
MetLife and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Prologis
The main advantage of trading using opposite MetLife and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| Prologis vs. Rexford Industrial Realty | Prologis vs. LXP Industrial Trust | Prologis vs. Public Storage | Prologis vs. Rexford Industrial Realty |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |