Correlation Between MetLife and 03740LAD4
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By analyzing existing cross correlation between MetLife and AON 285 28 MAY 27, you can compare the effects of market volatilities on MetLife and 03740LAD4 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 03740LAD4. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 03740LAD4.
Diversification Opportunities for MetLife and 03740LAD4
Excellent diversification
The 3 months correlation between MetLife and 03740LAD4 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and AON 285 28 MAY 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AON 285 28 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 03740LAD4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AON 285 28 has no effect on the direction of MetLife i.e., MetLife and 03740LAD4 go up and down completely randomly.
Pair Corralation between MetLife and 03740LAD4
Considering the 90-day investment horizon MetLife is expected to generate 4.52 times more return on investment than 03740LAD4. However, MetLife is 4.52 times more volatile than AON 285 28 MAY 27. It trades about 0.36 of its potential returns per unit of risk. AON 285 28 MAY 27 is currently generating about -0.21 per unit of risk. If you would invest 7,801 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,022 from holding MetLife or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
MetLife vs. AON 285 28 MAY 27
Performance |
| Timeline |
| MetLife |
| AON 285 28 |
MetLife and 03740LAD4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and 03740LAD4
The main advantage of trading using opposite MetLife and 03740LAD4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 03740LAD4 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 03740LAD4 will offset losses from the drop in 03740LAD4's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| 03740LAD4 vs. AEP TEX INC | 03740LAD4 vs. US BANK NATIONAL | 03740LAD4 vs. MetLife | 03740LAD4 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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