Correlation Between MetLife and REALTY
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By analyzing existing cross correlation between MetLife and REALTY INCOME P, you can compare the effects of market volatilities on MetLife and REALTY 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 REALTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and REALTY.
Diversification Opportunities for MetLife and REALTY
Very good diversification
The 3 months correlation between MetLife and REALTY is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and REALTY INCOME P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REALTY INCOME 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 REALTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REALTY INCOME P has no effect on the direction of MetLife i.e., MetLife and REALTY go up and down completely randomly.
Pair Corralation between MetLife and REALTY
Considering the 90-day investment horizon MetLife is expected to generate 2.61 times more return on investment than REALTY. However, MetLife is 2.61 times more volatile than REALTY INCOME P. It trades about 0.08 of its potential returns per unit of risk. REALTY INCOME P is currently generating about 0.0 per unit of risk. If you would invest 5,809 in MetLife on September 12, 2024 and sell it today you would earn a total of 2,365 from holding MetLife or generate 40.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.34% |
| Values | Daily Returns |
MetLife vs. REALTY INCOME P
Performance |
| Timeline |
| MetLife |
| REALTY INCOME P |
MetLife and REALTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and REALTY
The main advantage of trading using opposite MetLife and REALTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, REALTY 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 REALTY will offset losses from the drop in REALTY's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| REALTY vs. AEP TEX INC | REALTY vs. US BANK NATIONAL | REALTY vs. Recursion Pharmaceuticals | REALTY vs. SoundHound AI |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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