Correlation Between MetLife and TAISEM
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By analyzing existing cross correlation between MetLife and TAISEM 25 25 OCT 31, you can compare the effects of market volatilities on MetLife and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and TAISEM.
Diversification Opportunities for MetLife and TAISEM
Good diversification
The 3 months correlation between MetLife and TAISEM is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and TAISEM 25 25 OCT 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 25 25 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 25 25 has no effect on the direction of MetLife i.e., MetLife and TAISEM go up and down completely randomly.
Pair Corralation between MetLife and TAISEM
Considering the 90-day investment horizon MetLife is expected to generate 1.83 times more return on investment than TAISEM. However, MetLife is 1.83 times more volatile than TAISEM 25 25 OCT 31. It trades about 0.12 of its potential returns per unit of risk. TAISEM 25 25 OCT 31 is currently generating about -0.01 per unit of risk. If you would invest 5,149 in MetLife on September 3, 2024 and sell it today you would earn a total of 3,674 from holding MetLife or generate 71.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.94% |
| Values | Daily Returns |
MetLife vs. TAISEM 25 25 OCT 31
Performance |
| Timeline |
| MetLife |
| TAISEM 25 25 |
MetLife and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and TAISEM
The main advantage of trading using opposite MetLife and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM's long position.| MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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