Correlation Between MetLife and 06738EBW4
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By analyzing existing cross correlation between MetLife and BACR 333 24 NOV 42, you can compare the effects of market volatilities on MetLife and 06738EBW4 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 06738EBW4. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 06738EBW4.
Diversification Opportunities for MetLife and 06738EBW4
Good diversification
The 3 months correlation between MetLife and 06738EBW4 is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and BACR 333 24 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BACR 333 24 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 06738EBW4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BACR 333 24 has no effect on the direction of MetLife i.e., MetLife and 06738EBW4 go up and down completely randomly.
Pair Corralation between MetLife and 06738EBW4
Considering the 90-day investment horizon MetLife is expected to generate 1.07 times more return on investment than 06738EBW4. However, MetLife is 1.07 times more volatile than BACR 333 24 NOV 42. It trades about 0.08 of its potential returns per unit of risk. BACR 333 24 NOV 42 is currently generating about 0.01 per unit of risk. If you would invest 5,809 in MetLife on September 12, 2024 and sell it today you would earn a total of 2,365 from holding MetLife or generate 40.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.11% |
| Values | Daily Returns |
MetLife vs. BACR 333 24 NOV 42
Performance |
| Timeline |
| MetLife |
| BACR 333 24 |
MetLife and 06738EBW4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and 06738EBW4
The main advantage of trading using opposite MetLife and 06738EBW4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 06738EBW4 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 06738EBW4 will offset losses from the drop in 06738EBW4's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| 06738EBW4 vs. AEP TEX INC | 06738EBW4 vs. US BANK NATIONAL | 06738EBW4 vs. Alphabet Inc Class C | 06738EBW4 vs. InMode |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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