Correlation Between Adobe and MetLife
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By analyzing existing cross correlation between Adobe 23 percent and MetLife, you can compare the effects of market volatilities on Adobe and MetLife 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 Adobe with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe and MetLife.
Diversification Opportunities for Adobe and MetLife
Excellent diversification
The 3 months correlation between Adobe and MetLife is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Adobe 23 percent and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Adobe 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 Adobe 23 percent are associated (or correlated) with MetLife. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MetLife has no effect on the direction of Adobe i.e., Adobe and MetLife go up and down completely randomly.
Pair Corralation between Adobe and MetLife
Assuming the 90 days trading horizon Adobe 23 percent is expected to under-perform the MetLife. But the bond apears to be less risky and, when comparing its historical volatility, Adobe 23 percent is 2.93 times less risky than MetLife. The bond trades about -0.16 of its potential returns per unit of risk. The MetLife is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 7,801 in MetLife on September 3, 2024 and sell it today you would earn a total of 1,022 from holding MetLife or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adobe 23 percent vs. MetLife
Performance |
| Timeline |
| Adobe 23 percent |
| MetLife |
Adobe and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adobe and MetLife
The main advantage of trading using opposite Adobe and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adobe position performs unexpectedly, MetLife 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 MetLife will offset losses from the drop in MetLife's long position.| Adobe vs. AEP TEX INC | Adobe vs. US BANK NATIONAL | Adobe vs. Jackson Financial | Adobe vs. Brera Holdings PLC |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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