Correlation Between MetLife and TRAVELERS
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By analyzing existing cross correlation between MetLife and TRAVELERS INS GROUP, you can compare the effects of market volatilities on MetLife and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and TRAVELERS.
Diversification Opportunities for MetLife and TRAVELERS
Very weak diversification
The 3 months correlation between MetLife and TRAVELERS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of MetLife i.e., MetLife and TRAVELERS go up and down completely randomly.
Pair Corralation between MetLife and TRAVELERS
Considering the 90-day investment horizon MetLife is expected to generate 2.55 times more return on investment than TRAVELERS. However, MetLife is 2.55 times more volatile than TRAVELERS INS GROUP. It trades about 0.12 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.05 per unit of risk. If you would invest 6,900 in MetLife on September 5, 2024 and sell it today you would earn a total of 1,672 from holding MetLife or generate 24.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 49.6% |
| Values | Daily Returns |
MetLife vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| MetLife |
| TRAVELERS INS GROUP |
MetLife and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetLife and TRAVELERS
The main advantage of trading using opposite MetLife and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. CNO Financial Group |
| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. Jackson Financial | TRAVELERS vs. MetLife |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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