Correlation Between MetLife and HARTFORD
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By analyzing existing cross correlation between MetLife and HARTFORD FINL SVCS, you can compare the effects of market volatilities on MetLife and HARTFORD 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 HARTFORD. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and HARTFORD.
Diversification Opportunities for MetLife and HARTFORD
Very weak diversification
The 3 months correlation between MetLife and HARTFORD is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and HARTFORD FINL SVCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HARTFORD FINL SVCS 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 HARTFORD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HARTFORD FINL SVCS has no effect on the direction of MetLife i.e., MetLife and HARTFORD go up and down completely randomly.
Pair Corralation between MetLife and HARTFORD
Considering the 90-day investment horizon MetLife is expected to generate 1.15 times more return on investment than HARTFORD. However, MetLife is 1.15 times more volatile than HARTFORD FINL SVCS. It trades about 0.1 of its potential returns per unit of risk. HARTFORD FINL SVCS is currently generating about 0.0 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 | Weak |
| Accuracy | 36.44% |
| Values | Daily Returns |
MetLife vs. HARTFORD FINL SVCS
Performance |
| Timeline |
| MetLife |
| HARTFORD FINL SVCS |
MetLife and HARTFORD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and HARTFORD
The main advantage of trading using opposite MetLife and HARTFORD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, HARTFORD 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 HARTFORD will offset losses from the drop in HARTFORD's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| HARTFORD vs. AEP TEX INC | HARTFORD vs. US BANK NATIONAL | HARTFORD vs. Jackson Financial | HARTFORD vs. MetLife |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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