Correlation Between MetLife and TNEMAK
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By analyzing existing cross correlation between MetLife and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on MetLife and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and TNEMAK.
Diversification Opportunities for MetLife and TNEMAK
Modest diversification
The 3 months correlation between MetLife and TNEMAK is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of MetLife i.e., MetLife and TNEMAK go up and down completely randomly.
Pair Corralation between MetLife and TNEMAK
Considering the 90-day investment horizon MetLife is expected to generate 0.91 times more return on investment than TNEMAK. However, MetLife is 1.09 times less risky than TNEMAK. It trades about 0.08 of its potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.0 per unit of risk. If you would invest 5,809 in MetLife on September 12, 2024 and sell it today you would earn a total of 2,365 from holding MetLife or generate 40.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 20.17% |
| Values | Daily Returns |
MetLife vs. TNEMAK 3625 28 JUN 31
Performance |
| Timeline |
| MetLife |
| TNEMAK 3625 28 |
MetLife and TNEMAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and TNEMAK
The main advantage of trading using opposite MetLife and TNEMAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, TNEMAK 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 TNEMAK will offset losses from the drop in TNEMAK'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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