Correlation Between MetLife and Alexandria
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By analyzing existing cross correlation between MetLife and Alexandria Real Estate, you can compare the effects of market volatilities on MetLife and Alexandria 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 Alexandria. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Alexandria.
Diversification Opportunities for MetLife and Alexandria
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetLife and Alexandria is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Alexandria Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alexandria Real Estate 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 Alexandria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alexandria Real Estate has no effect on the direction of MetLife i.e., MetLife and Alexandria go up and down completely randomly.
Pair Corralation between MetLife and Alexandria
Considering the 90-day investment horizon MetLife is expected to generate 0.87 times more return on investment than Alexandria. However, MetLife is 1.15 times less risky than Alexandria. It trades about 0.1 of its potential returns per unit of risk. Alexandria Real Estate is currently generating about -0.01 per unit of risk. If you would invest 6,296 in MetLife on September 4, 2024 and sell it today you would earn a total of 2,276 from holding MetLife or generate 36.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.07% |
| Values | Daily Returns |
MetLife vs. Alexandria Real Estate
Performance |
| Timeline |
| MetLife |
| Alexandria Real Estate |
MetLife and Alexandria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Alexandria
The main advantage of trading using opposite MetLife and Alexandria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Alexandria 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 Alexandria will offset losses from the drop in Alexandria's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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