Correlation Between MetLife and Navient
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By analyzing existing cross correlation between MetLife and Navient 5 percent, you can compare the effects of market volatilities on MetLife and Navient 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 Navient. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Navient.
Diversification Opportunities for MetLife and Navient
Excellent diversification
The 3 months correlation between MetLife and Navient is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Navient 5 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient 5 percent 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 Navient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient 5 percent has no effect on the direction of MetLife i.e., MetLife and Navient go up and down completely randomly.
Pair Corralation between MetLife and Navient
Considering the 90-day investment horizon MetLife is expected to generate 60.06 times less return on investment than Navient. But when comparing it to its historical volatility, MetLife is 41.63 times less risky than Navient. It trades about 0.04 of its potential returns per unit of risk. Navient 5 percent is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 9,008 in Navient 5 percent on September 5, 2024 and sell it today you would lose (270.00) from holding Navient 5 percent or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
MetLife vs. Navient 5 percent
Performance |
| Timeline |
| MetLife |
| Navient 5 percent |
MetLife and Navient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and Navient
The main advantage of trading using opposite MetLife and Navient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Navient 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 Navient will offset losses from the drop in Navient's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. CNO Financial Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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