Correlation Between METLIFE and FormFactor
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By analyzing existing cross correlation between METLIFE INC 65 and FormFactor, you can compare the effects of market volatilities on METLIFE and FormFactor 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 FormFactor. Check out your portfolio center. Please also check ongoing floating volatility patterns of METLIFE and FormFactor.
Diversification Opportunities for METLIFE and FormFactor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between METLIFE and FormFactor is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding METLIFE INC 65 and FormFactor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FormFactor 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 INC 65 are associated (or correlated) with FormFactor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FormFactor has no effect on the direction of METLIFE i.e., METLIFE and FormFactor go up and down completely randomly.
Pair Corralation between METLIFE and FormFactor
Assuming the 90 days trading horizon METLIFE INC 65 is expected to under-perform the FormFactor. But the bond apears to be less risky and, when comparing its historical volatility, METLIFE INC 65 is 2.26 times less risky than FormFactor. The bond trades about 0.0 of its potential returns per unit of risk. The FormFactor is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4,196 in FormFactor on September 12, 2024 and sell it today you would earn a total of 4.00 from holding FormFactor or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
METLIFE INC 65 vs. FormFactor
Performance |
| Timeline |
| METLIFE INC 65 |
| FormFactor |
METLIFE and FormFactor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with METLIFE and FormFactor
The main advantage of trading using opposite METLIFE and FormFactor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METLIFE position performs unexpectedly, FormFactor 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 FormFactor will offset losses from the drop in FormFactor's long position.| METLIFE vs. AEP TEX INC | METLIFE vs. US BANK NATIONAL | METLIFE vs. Recursion Pharmaceuticals | METLIFE vs. SoundHound AI |
| FormFactor vs. Silicon Laboratories | FormFactor vs. Diodes Incorporated | FormFactor vs. MACOM Technology Solutions | FormFactor vs. Amkor Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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