Correlation Between MetLife and 125896BN9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MetLife and 125896BN9 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MetLife and 125896BN9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and CMS ENERGY P, you can compare the effects of market volatilities on MetLife and 125896BN9 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 125896BN9. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 125896BN9.

Diversification Opportunities for MetLife and 125896BN9

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between MetLife and 125896BN9 is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and CMS ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMS ENERGY 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 125896BN9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMS ENERGY P has no effect on the direction of MetLife i.e., MetLife and 125896BN9 go up and down completely randomly.

Pair Corralation between MetLife and 125896BN9

Considering the 90-day investment horizon MetLife is expected to generate 223.51 times less return on investment than 125896BN9. But when comparing it to its historical volatility, MetLife is 80.0 times less risky than 125896BN9. It trades about 0.04 of its potential returns per unit of risk. CMS ENERGY P is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  9,658  in CMS ENERGY P on September 5, 2024 and sell it today you would lose (351.00) from holding CMS ENERGY P or give up 3.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy53.33%
ValuesDaily Returns

MetLife  vs.  CMS ENERGY P

 Performance 
       Timeline  
MetLife 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, MetLife unveiled solid returns over the last few months and may actually be approaching a breakup point.
CMS ENERGY P 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CMS ENERGY P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 125896BN9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

MetLife and 125896BN9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MetLife and 125896BN9

The main advantage of trading using opposite MetLife and 125896BN9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 125896BN9 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 125896BN9 will offset losses from the drop in 125896BN9's long position.
MetLife vs. Aflac Incorporated
MetLife vs. Manulife Financial Corp
MetLife vs. Jackson Financial
MetLife vs. CNO Financial Group
The idea behind MetLife and CMS ENERGY P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
125896BN9 vs. AEP TEX INC
125896BN9 vs. US BANK NATIONAL
125896BN9 vs. MetLife
125896BN9 vs. Jackson Financial
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY