Correlation Between MetLife and NESNVX
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By analyzing existing cross correlation between MetLife and NESNVX 125 15 SEP 30, you can compare the effects of market volatilities on MetLife and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and NESNVX.
Diversification Opportunities for MetLife and NESNVX
Modest diversification
The 3 months correlation between MetLife and NESNVX is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and NESNVX 125 15 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 125 15 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 125 15 has no effect on the direction of MetLife i.e., MetLife and NESNVX go up and down completely randomly.
Pair Corralation between MetLife and NESNVX
Considering the 90-day investment horizon MetLife is expected to generate 1.42 times more return on investment than NESNVX. However, MetLife is 1.42 times more volatile than NESNVX 125 15 SEP 30. It trades about 0.3 of its potential returns per unit of risk. NESNVX 125 15 SEP 30 is currently generating about -0.24 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 | Very Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
MetLife vs. NESNVX 125 15 SEP 30
Performance |
| Timeline |
| MetLife |
| NESNVX 125 15 |
MetLife and NESNVX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and NESNVX
The main advantage of trading using opposite MetLife and NESNVX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, NESNVX 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 NESNVX will offset losses from the drop in NESNVX's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. Globe Life |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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