Correlation Between MetLife and SCHWAB
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By analyzing existing cross correlation between MetLife and SCHWAB CHARLES P, you can compare the effects of market volatilities on MetLife and SCHWAB 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 SCHWAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and SCHWAB.
Diversification Opportunities for MetLife and SCHWAB
Very weak diversification
The 3 months correlation between MetLife and SCHWAB is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and SCHWAB CHARLES P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHWAB CHARLES 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 SCHWAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHWAB CHARLES P has no effect on the direction of MetLife i.e., MetLife and SCHWAB go up and down completely randomly.
Pair Corralation between MetLife and SCHWAB
Considering the 90-day investment horizon MetLife is expected to generate 4.83 times more return on investment than SCHWAB. However, MetLife is 4.83 times more volatile than SCHWAB CHARLES P. It trades about 0.08 of its potential returns per unit of risk. SCHWAB CHARLES P is currently generating about -0.03 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 539.00 from holding MetLife or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.31% |
| Values | Daily Returns |
MetLife vs. SCHWAB CHARLES P
Performance |
| Timeline |
| MetLife |
| SCHWAB CHARLES P |
MetLife and SCHWAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and SCHWAB
The main advantage of trading using opposite MetLife and SCHWAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, SCHWAB 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 SCHWAB will offset losses from the drop in SCHWAB's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| SCHWAB vs. Mesa Air Group | SCHWAB vs. Proficient Auto Logistics, | SCHWAB vs. VirnetX Holding Corp | SCHWAB vs. Hafnia Limited |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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