Correlation Between MetLife and NSTAR
Specify exactly 2 symbols:
By analyzing existing cross correlation between MetLife and NSTAR ELEC 44, you can compare the effects of market volatilities on MetLife and NSTAR 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 NSTAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and NSTAR.
Diversification Opportunities for MetLife and NSTAR
Very good diversification
The 3 months correlation between MetLife and NSTAR is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and NSTAR ELEC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTAR ELEC 44 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 NSTAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTAR ELEC 44 has no effect on the direction of MetLife i.e., MetLife and NSTAR go up and down completely randomly.
Pair Corralation between MetLife and NSTAR
Considering the 90-day investment horizon MetLife is expected to generate 1.48 times more return on investment than NSTAR. However, MetLife is 1.48 times more volatile than NSTAR ELEC 44. It trades about 0.09 of its potential returns per unit of risk. NSTAR ELEC 44 is currently generating about -0.09 per unit of risk. If you would invest 7,494 in MetLife on September 12, 2024 and sell it today you would earn a total of 680.00 from holding MetLife or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 41.27% |
| Values | Daily Returns |
MetLife vs. NSTAR ELEC 44
Performance |
| Timeline |
| MetLife |
| NSTAR ELEC 44 |
MetLife and NSTAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and NSTAR
The main advantage of trading using opposite MetLife and NSTAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, NSTAR 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 NSTAR will offset losses from the drop in NSTAR's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| NSTAR vs. Morgan Stanley | NSTAR vs. Kite Realty Group | NSTAR vs. Shake Shack | NSTAR vs. First Watch Restaurant |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |