Correlation Between MetLife and FMEGR
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By analyzing existing cross correlation between MetLife and FMEGR 1875 01 DEC 26, you can compare the effects of market volatilities on MetLife and FMEGR 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 FMEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and FMEGR.
Diversification Opportunities for MetLife and FMEGR
Modest diversification
The 3 months correlation between MetLife and FMEGR is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and FMEGR 1875 01 DEC 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMEGR 1875 01 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 FMEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMEGR 1875 01 has no effect on the direction of MetLife i.e., MetLife and FMEGR go up and down completely randomly.
Pair Corralation between MetLife and FMEGR
Considering the 90-day investment horizon MetLife is expected to generate 1.61 times more return on investment than FMEGR. However, MetLife is 1.61 times more volatile than FMEGR 1875 01 DEC 26. It trades about 0.04 of its potential returns per unit of risk. FMEGR 1875 01 DEC 26 is currently generating about 0.03 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 | 40.0% |
| Values | Daily Returns |
MetLife vs. FMEGR 1875 01 DEC 26
Performance |
| Timeline |
| MetLife |
| FMEGR 1875 01 |
MetLife and FMEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and FMEGR
The main advantage of trading using opposite MetLife and FMEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, FMEGR 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 FMEGR will offset losses from the drop in FMEGR'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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