Correlation Between MetLife and GOLDMAN
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By analyzing existing cross correlation between MetLife and GOLDMAN SACHS GROUP, you can compare the effects of market volatilities on MetLife and GOLDMAN 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 GOLDMAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and GOLDMAN.
Diversification Opportunities for MetLife and GOLDMAN
Excellent diversification
The 3 months correlation between MetLife and GOLDMAN is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and GOLDMAN SACHS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLDMAN SACHS GROUP 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 GOLDMAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLDMAN SACHS GROUP has no effect on the direction of MetLife i.e., MetLife and GOLDMAN go up and down completely randomly.
Pair Corralation between MetLife and GOLDMAN
Considering the 90-day investment horizon MetLife is expected to generate 2.82 times more return on investment than GOLDMAN. However, MetLife is 2.82 times more volatile than GOLDMAN SACHS GROUP. It trades about 0.04 of its potential returns per unit of risk. GOLDMAN SACHS GROUP is currently generating about 0.0 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MetLife vs. GOLDMAN SACHS GROUP
Performance |
| Timeline |
| MetLife |
| GOLDMAN SACHS GROUP |
MetLife and GOLDMAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and GOLDMAN
The main advantage of trading using opposite MetLife and GOLDMAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, GOLDMAN 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 GOLDMAN will offset losses from the drop in GOLDMAN'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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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