Correlation Between MetLife and NISOURCE
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By analyzing existing cross correlation between MetLife and NISOURCE FIN P, you can compare the effects of market volatilities on MetLife and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and NISOURCE.
Diversification Opportunities for MetLife and NISOURCE
Average diversification
The 3 months correlation between MetLife and NISOURCE is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of MetLife i.e., MetLife and NISOURCE go up and down completely randomly.
Pair Corralation between MetLife and NISOURCE
Considering the 90-day investment horizon MetLife is expected to generate 1.97 times more return on investment than NISOURCE. However, MetLife is 1.97 times more volatile than NISOURCE FIN P. It trades about 0.14 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.08 per unit of risk. If you would invest 7,722 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,101 from holding MetLife or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.19% |
| Values | Daily Returns |
MetLife vs. NISOURCE FIN P
Performance |
| Timeline |
| MetLife |
| NISOURCE FIN P |
MetLife and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and NISOURCE
The main advantage of trading using opposite MetLife and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| NISOURCE vs. AEP TEX INC | NISOURCE vs. US BANK NATIONAL | NISOURCE vs. MetLife | NISOURCE vs. Jackson Financial |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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