Correlation Between MetLife and AMERICAN
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By analyzing existing cross correlation between MetLife and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on MetLife and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and AMERICAN.
Diversification Opportunities for MetLife and AMERICAN
Excellent diversification
The 3 months correlation between MetLife and AMERICAN is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of MetLife i.e., MetLife and AMERICAN go up and down completely randomly.
Pair Corralation between MetLife and AMERICAN
Considering the 90-day investment horizon MetLife is expected to generate 3.01 times more return on investment than AMERICAN. However, MetLife is 3.01 times more volatile than AMERICAN EXPRESS CR. It trades about 0.1 of its potential returns per unit of risk. AMERICAN EXPRESS CR 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 | Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
MetLife vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| MetLife |
| AMERICAN EXPRESS |
MetLife and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and AMERICAN
The main advantage of trading using opposite MetLife and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| AMERICAN vs. Paiute Oil Mining | AMERICAN vs. Western Asset Investment | AMERICAN vs. Corporacion America Airports | AMERICAN vs. Ryanair 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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