Correlation Between MetLife and 70082LAB3
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By analyzing existing cross correlation between MetLife and US70082LAB36, you can compare the effects of market volatilities on MetLife and 70082LAB3 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 70082LAB3. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 70082LAB3.
Diversification Opportunities for MetLife and 70082LAB3
Very weak diversification
The 3 months correlation between MetLife and 70082LAB3 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and US70082LAB36 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70082LAB36 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 70082LAB3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70082LAB36 has no effect on the direction of MetLife i.e., MetLife and 70082LAB3 go up and down completely randomly.
Pair Corralation between MetLife and 70082LAB3
Considering the 90-day investment horizon MetLife is expected to under-perform the 70082LAB3. But the stock apears to be less risky and, when comparing its historical volatility, MetLife is 1.56 times less risky than 70082LAB3. The stock trades about -0.06 of its potential returns per unit of risk. The US70082LAB36 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8,921 in US70082LAB36 on September 12, 2024 and sell it today you would lose (4.00) from holding US70082LAB36 or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 59.09% |
| Values | Daily Returns |
MetLife vs. US70082LAB36
Performance |
| Timeline |
| MetLife |
| US70082LAB36 |
MetLife and 70082LAB3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and 70082LAB3
The main advantage of trading using opposite MetLife and 70082LAB3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 70082LAB3 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 70082LAB3 will offset losses from the drop in 70082LAB3's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| 70082LAB3 vs. MACOM Technology Solutions | 70082LAB3 vs. Willamette Valley Vineyards | 70082LAB3 vs. Anheuser Busch Inbev | 70082LAB3 vs. Vishay Intertechnology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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