Correlation Between MetLife and PENSKE
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By analyzing existing cross correlation between MetLife and PENSKE 57 01 FEB 28, you can compare the effects of market volatilities on MetLife and PENSKE 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 PENSKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and PENSKE.
Diversification Opportunities for MetLife and PENSKE
Good diversification
The 3 months correlation between MetLife and PENSKE is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and PENSKE 57 01 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENSKE 57 01 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 PENSKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENSKE 57 01 has no effect on the direction of MetLife i.e., MetLife and PENSKE go up and down completely randomly.
Pair Corralation between MetLife and PENSKE
Considering the 90-day investment horizon MetLife is expected to generate 3.11 times more return on investment than PENSKE. However, MetLife is 3.11 times more volatile than PENSKE 57 01 FEB 28. It trades about 0.24 of its potential returns per unit of risk. PENSKE 57 01 FEB 28 is currently generating about -0.24 per unit of risk. If you would invest 7,801 in MetLife on September 5, 2024 and sell it today you would earn a total of 737.00 from holding MetLife or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
MetLife vs. PENSKE 57 01 FEB 28
Performance |
| Timeline |
| MetLife |
| PENSKE 57 01 |
MetLife and PENSKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and PENSKE
The main advantage of trading using opposite MetLife and PENSKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, PENSKE 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 PENSKE will offset losses from the drop in PENSKE's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. CNO Financial Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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