Correlation Between MetLife and 06051GGA1
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By analyzing existing cross correlation between MetLife and BANK AMER P, you can compare the effects of market volatilities on MetLife and 06051GGA1 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 06051GGA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 06051GGA1.
Diversification Opportunities for MetLife and 06051GGA1
Excellent diversification
The 3 months correlation between MetLife and 06051GGA1 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 06051GGA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of MetLife i.e., MetLife and 06051GGA1 go up and down completely randomly.
Pair Corralation between MetLife and 06051GGA1
Considering the 90-day investment horizon MetLife is expected to generate 3.69 times more return on investment than 06051GGA1. However, MetLife is 3.69 times more volatile than BANK AMER P. It trades about 0.04 of its potential returns per unit of risk. BANK AMER P is currently generating about 0.01 per unit of risk. If you would invest 6,865 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,958 from holding MetLife or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
MetLife vs. BANK AMER P
Performance |
| Timeline |
| MetLife |
| BANK AMER P |
MetLife and 06051GGA1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and 06051GGA1
The main advantage of trading using opposite MetLife and 06051GGA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 06051GGA1 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 06051GGA1 will offset losses from the drop in 06051GGA1's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| 06051GGA1 vs. AEP TEX INC | 06051GGA1 vs. US BANK NATIONAL | 06051GGA1 vs. Jackson Financial | 06051GGA1 vs. MetLife |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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