Correlation Between MetLife and EXELON
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By analyzing existing cross correlation between MetLife and EXELON GENERATION LLC, you can compare the effects of market volatilities on MetLife and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and EXELON.
Diversification Opportunities for MetLife and EXELON
Very good diversification
The 3 months correlation between MetLife and EXELON is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of MetLife i.e., MetLife and EXELON go up and down completely randomly.
Pair Corralation between MetLife and EXELON
Considering the 90-day investment horizon MetLife is expected to generate 1.41 times more return on investment than EXELON. However, MetLife is 1.41 times more volatile than EXELON GENERATION LLC. It trades about 0.04 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about 0.01 per unit of risk. If you would invest 6,829 in MetLife on September 4, 2024 and sell it today you would earn a total of 1,859 from holding MetLife or generate 27.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.7% |
| Values | Daily Returns |
MetLife vs. EXELON GENERATION LLC
Performance |
| Timeline |
| MetLife |
| EXELON GENERATION LLC |
MetLife and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and EXELON
The main advantage of trading using opposite MetLife and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| EXELON vs. PepsiCo | EXELON vs. Vodka Brands Corp | EXELON vs. Brandywine Realty Trust | EXELON vs. Emerson Radio |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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