Correlation Between MetLife and SideChannel
Can any of the company-specific risk be diversified away by investing in both MetLife and SideChannel 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 SideChannel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and SideChannel, you can compare the effects of market volatilities on MetLife and SideChannel 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 SideChannel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and SideChannel.
Diversification Opportunities for MetLife and SideChannel
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MetLife and SideChannel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and SideChannel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SideChannel 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 SideChannel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SideChannel has no effect on the direction of MetLife i.e., MetLife and SideChannel go up and down completely randomly.
Pair Corralation between MetLife and SideChannel
Considering the 90-day investment horizon MetLife is expected to generate 0.26 times more return on investment than SideChannel. However, MetLife is 3.88 times less risky than SideChannel. It trades about 0.3 of its potential returns per unit of risk. SideChannel is currently generating about -0.23 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 | 100.0% |
| Values | Daily Returns |
MetLife vs. SideChannel
Performance |
| Timeline |
| MetLife |
| SideChannel |
MetLife and SideChannel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and SideChannel
The main advantage of trading using opposite MetLife and SideChannel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, SideChannel 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 SideChannel will offset losses from the drop in SideChannel's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| SideChannel vs. Taoping | SideChannel vs. Aurora Mobile | SideChannel vs. Hub Cyber Security | SideChannel vs. authID 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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