Correlation Between MetLife and ACAFP
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By analyzing existing cross correlation between MetLife and ACAFP 475, you can compare the effects of market volatilities on MetLife and ACAFP 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 ACAFP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and ACAFP.
Diversification Opportunities for MetLife and ACAFP
Average diversification
The 3 months correlation between MetLife and ACAFP is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and ACAFP 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACAFP 475 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 ACAFP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACAFP 475 has no effect on the direction of MetLife i.e., MetLife and ACAFP go up and down completely randomly.
Pair Corralation between MetLife and ACAFP
Considering the 90-day investment horizon MetLife is expected to generate 0.52 times more return on investment than ACAFP. However, MetLife is 1.93 times less risky than ACAFP. It trades about 0.08 of its potential returns per unit of risk. ACAFP 475 is currently generating about 0.0 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 Together |
| Strength | Insignificant |
| Accuracy | 32.67% |
| Values | Daily Returns |
MetLife vs. ACAFP 475
Performance |
| Timeline |
| MetLife |
| ACAFP 475 |
MetLife and ACAFP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and ACAFP
The main advantage of trading using opposite MetLife and ACAFP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, ACAFP 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 ACAFP will offset losses from the drop in ACAFP'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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