Correlation Between MetLife and ONCOR
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By analyzing existing cross correlation between MetLife and ONCOR ELEC DELIVERY, you can compare the effects of market volatilities on MetLife and ONCOR 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 ONCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and ONCOR.
Diversification Opportunities for MetLife and ONCOR
Excellent diversification
The 3 months correlation between MetLife and ONCOR is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and ONCOR ELEC DELIVERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONCOR ELEC DELIVERY 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 ONCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONCOR ELEC DELIVERY has no effect on the direction of MetLife i.e., MetLife and ONCOR go up and down completely randomly.
Pair Corralation between MetLife and ONCOR
Considering the 90-day investment horizon MetLife is expected to generate 2.98 times more return on investment than ONCOR. However, MetLife is 2.98 times more volatile than ONCOR ELEC DELIVERY. It trades about 0.3 of its potential returns per unit of risk. ONCOR ELEC DELIVERY is currently generating about -0.16 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 Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
MetLife vs. ONCOR ELEC DELIVERY
Performance |
| Timeline |
| MetLife |
| ONCOR ELEC DELIVERY |
MetLife and ONCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and ONCOR
The main advantage of trading using opposite MetLife and ONCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, ONCOR 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 ONCOR will offset losses from the drop in ONCOR'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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