Correlation Between MetLife and SUMITOMO
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By analyzing existing cross correlation between MetLife and SUMITOMO MITSUI FINL, you can compare the effects of market volatilities on MetLife and SUMITOMO 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 SUMITOMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and SUMITOMO.
Diversification Opportunities for MetLife and SUMITOMO
Good diversification
The 3 months correlation between MetLife and SUMITOMO is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and SUMITOMO MITSUI FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITOMO MITSUI FINL 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 SUMITOMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITOMO MITSUI FINL has no effect on the direction of MetLife i.e., MetLife and SUMITOMO go up and down completely randomly.
Pair Corralation between MetLife and SUMITOMO
Considering the 90-day investment horizon MetLife is expected to generate 1.95 times more return on investment than SUMITOMO. However, MetLife is 1.95 times more volatile than SUMITOMO MITSUI FINL. It trades about 0.08 of its potential returns per unit of risk. SUMITOMO MITSUI FINL 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 | Insignificant |
| Accuracy | 82.67% |
| Values | Daily Returns |
MetLife vs. SUMITOMO MITSUI FINL
Performance |
| Timeline |
| MetLife |
| SUMITOMO MITSUI FINL |
MetLife and SUMITOMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and SUMITOMO
The main advantage of trading using opposite MetLife and SUMITOMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, SUMITOMO 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 SUMITOMO will offset losses from the drop in SUMITOMO's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
| SUMITOMO vs. AEP TEX INC | SUMITOMO vs. US BANK NATIONAL | SUMITOMO vs. Recursion Pharmaceuticals | SUMITOMO 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 CEOs Directory module to screen CEOs from public companies around the world.
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