Correlation Between MetLife and GENERAL
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By analyzing existing cross correlation between MetLife and GENERAL ELEC CAP, you can compare the effects of market volatilities on MetLife and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and GENERAL.
Diversification Opportunities for MetLife and GENERAL
Modest diversification
The 3 months correlation between MetLife and GENERAL is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of MetLife i.e., MetLife and GENERAL go up and down completely randomly.
Pair Corralation between MetLife and GENERAL
Considering the 90-day investment horizon MetLife is expected to generate 0.4 times more return on investment than GENERAL. However, MetLife is 2.49 times less risky than GENERAL. It trades about 0.1 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.01 per unit of risk. If you would invest 6,296 in MetLife on September 4, 2024 and sell it today you would earn a total of 2,276 from holding MetLife or generate 36.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.06% |
| Values | Daily Returns |
MetLife vs. GENERAL ELEC CAP
Performance |
| Timeline |
| MetLife |
| GENERAL ELEC CAP |
MetLife and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and GENERAL
The main advantage of trading using opposite MetLife and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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