Correlation Between MetLife and BZLNZ
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By analyzing existing cross correlation between MetLife and BZLNZ 2 21 FEB 25, you can compare the effects of market volatilities on MetLife and BZLNZ 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 BZLNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and BZLNZ.
Diversification Opportunities for MetLife and BZLNZ
Very weak diversification
The 3 months correlation between MetLife and BZLNZ is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and BZLNZ 2 21 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BZLNZ 2 21 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 BZLNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BZLNZ 2 21 has no effect on the direction of MetLife i.e., MetLife and BZLNZ go up and down completely randomly.
Pair Corralation between MetLife and BZLNZ
Considering the 90-day investment horizon MetLife is expected to generate 1.89 times more return on investment than BZLNZ. However, MetLife is 1.89 times more volatile than BZLNZ 2 21 FEB 25. It trades about 0.0 of its potential returns per unit of risk. BZLNZ 2 21 FEB 25 is currently generating about -0.36 per unit of risk. If you would invest 8,177 in MetLife on September 12, 2024 and sell it today you would lose (3.00) from holding MetLife or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 27.27% |
| Values | Daily Returns |
MetLife vs. BZLNZ 2 21 FEB 25
Performance |
| Timeline |
| MetLife |
| BZLNZ 2 21 |
MetLife and BZLNZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and BZLNZ
The main advantage of trading using opposite MetLife and BZLNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, BZLNZ 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 BZLNZ will offset losses from the drop in BZLNZ's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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