Correlation Between MetLife and Calumet
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By analyzing existing cross correlation between MetLife and Calumet Specialty Products, you can compare the effects of market volatilities on MetLife and Calumet 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 Calumet. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Calumet.
Diversification Opportunities for MetLife and Calumet
Weak diversification
The 3 months correlation between MetLife and Calumet is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Calumet Specialty Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calumet Specialty 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 Calumet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calumet Specialty has no effect on the direction of MetLife i.e., MetLife and Calumet go up and down completely randomly.
Pair Corralation between MetLife and Calumet
Considering the 90-day investment horizon MetLife is expected to generate 76.27 times less return on investment than Calumet. But when comparing it to its historical volatility, MetLife is 42.99 times less risky than Calumet. It trades about 0.03 of its potential returns per unit of risk. Calumet Specialty Products is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 10,500 in Calumet Specialty Products on September 12, 2024 and sell it today you would lose (475.00) from holding Calumet Specialty Products or give up 4.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 46.26% |
| Values | Daily Returns |
MetLife vs. Calumet Specialty Products
Performance |
| Timeline |
| MetLife |
| Calumet Specialty |
MetLife and Calumet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Calumet
The main advantage of trading using opposite MetLife and Calumet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Calumet 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 Calumet will offset losses from the drop in Calumet's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| Calumet vs. Summit Materials | Calumet vs. Playa Hotels Resorts | Calumet vs. Ark Restaurants Corp | Calumet vs. American Hotel Income |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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