Correlation Between MetLife and MRKGR
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By analyzing existing cross correlation between MetLife and MRKGR 325 19 MAR 25, you can compare the effects of market volatilities on MetLife and MRKGR 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 MRKGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and MRKGR.
Diversification Opportunities for MetLife and MRKGR
Weak diversification
The 3 months correlation between MetLife and MRKGR is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and MRKGR 325 19 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRKGR 325 19 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 MRKGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRKGR 325 19 has no effect on the direction of MetLife i.e., MetLife and MRKGR go up and down completely randomly.
Pair Corralation between MetLife and MRKGR
Considering the 90-day investment horizon MetLife is expected to generate 3.63 times more return on investment than MRKGR. However, MetLife is 3.63 times more volatile than MRKGR 325 19 MAR 25. It trades about 0.04 of its potential returns per unit of risk. MRKGR 325 19 MAR 25 is currently generating about 0.02 per unit of risk. If you would invest 6,865 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,958 from holding MetLife or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.38% |
| Values | Daily Returns |
MetLife vs. MRKGR 325 19 MAR 25
Performance |
| Timeline |
| MetLife |
| MRKGR 325 19 |
MetLife and MRKGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and MRKGR
The main advantage of trading using opposite MetLife and MRKGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, MRKGR 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 MRKGR will offset losses from the drop in MRKGR'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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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