Correlation Between MetLife and Hyundai
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By analyzing existing cross correlation between MetLife and Hyundai Capital America, you can compare the effects of market volatilities on MetLife and Hyundai 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 Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Hyundai.
Diversification Opportunities for MetLife and Hyundai
Very weak diversification
The 3 months correlation between MetLife and Hyundai is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Hyundai Capital America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Capital America 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Capital America has no effect on the direction of MetLife i.e., MetLife and Hyundai go up and down completely randomly.
Pair Corralation between MetLife and Hyundai
Considering the 90-day investment horizon MetLife is expected to generate 11.97 times more return on investment than Hyundai. However, MetLife is 11.97 times more volatile than Hyundai Capital America. It trades about 0.3 of its potential returns per unit of risk. Hyundai Capital America is currently generating about -0.1 per unit of risk. If you would invest 7,801 in MetLife on September 4, 2024 and sell it today you would earn a total of 887.00 from holding MetLife or generate 11.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
MetLife vs. Hyundai Capital America
Performance |
| Timeline |
| MetLife |
| Hyundai Capital America |
MetLife and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Hyundai
The main advantage of trading using opposite MetLife and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
| Hyundai vs. AEP TEX INC | Hyundai vs. US BANK NATIONAL | Hyundai vs. MetLife | Hyundai vs. Brera Holdings PLC |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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