Correlation Between MetLife and 01166VAA7

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MetLife and 01166VAA7 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 01166VAA7 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and ALK 48 15 AUG 27, you can compare the effects of market volatilities on MetLife and 01166VAA7 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 01166VAA7. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 01166VAA7.

Diversification Opportunities for MetLife and 01166VAA7

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between MetLife and 01166VAA7 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and ALK 48 15 AUG 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALK 48 15 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 01166VAA7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALK 48 15 has no effect on the direction of MetLife i.e., MetLife and 01166VAA7 go up and down completely randomly.

Pair Corralation between MetLife and 01166VAA7

Considering the 90-day investment horizon MetLife is expected to generate 1.76 times more return on investment than 01166VAA7. However, MetLife is 1.76 times more volatile than ALK 48 15 AUG 27. It trades about 0.12 of its potential returns per unit of risk. ALK 48 15 AUG 27 is currently generating about -0.02 per unit of risk. If you would invest  5,751  in MetLife on September 4, 2024 and sell it today you would earn a total of  2,937  from holding MetLife or generate 51.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy36.94%
ValuesDaily Returns

MetLife  vs.  ALK 48 15 AUG 27

 Performance 
       Timeline  
MetLife 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, MetLife unveiled solid returns over the last few months and may actually be approaching a breakup point.
ALK 48 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ALK 48 15 AUG 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ALK 48 15 AUG 27 investors.

MetLife and 01166VAA7 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MetLife and 01166VAA7

The main advantage of trading using opposite MetLife and 01166VAA7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 01166VAA7 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 01166VAA7 will offset losses from the drop in 01166VAA7's long position.
MetLife vs. Aflac Incorporated
MetLife vs. Manulife Financial Corp
MetLife vs. Jackson Financial
MetLife vs. Globe Life
The idea behind MetLife and ALK 48 15 AUG 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
01166VAA7 vs. AEP TEX INC
01166VAA7 vs. US BANK NATIONAL
01166VAA7 vs. MetLife
01166VAA7 vs. Brera Holdings PLC
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY