Correlation Between MetLife and SOCGEN
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By analyzing existing cross correlation between MetLife and SOCGEN 3 22 JAN 30, you can compare the effects of market volatilities on MetLife and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and SOCGEN.
Diversification Opportunities for MetLife and SOCGEN
Very weak diversification
The 3 months correlation between MetLife and SOCGEN is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and SOCGEN 3 22 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 3 22 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 3 22 has no effect on the direction of MetLife i.e., MetLife and SOCGEN go up and down completely randomly.
Pair Corralation between MetLife and SOCGEN
Considering the 90-day investment horizon MetLife is expected to generate 0.82 times more return on investment than SOCGEN. However, MetLife is 1.22 times less risky than SOCGEN. It trades about 0.3 of its potential returns per unit of risk. SOCGEN 3 22 JAN 30 is currently generating about -0.3 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 Together |
| Strength | Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
MetLife vs. SOCGEN 3 22 JAN 30
Performance |
| Timeline |
| MetLife |
| SOCGEN 3 22 |
MetLife and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and SOCGEN
The main advantage of trading using opposite MetLife and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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