Correlation Between MetLife and All For

Can any of the company-specific risk be diversified away by investing in both MetLife and All For at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining MetLife and All For into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MetLife and All For One, you can compare the effects of market volatilities on MetLife and All For 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 All For. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and All For.

Diversification Opportunities for MetLife and All For

0.0

Correlation Coefficient

MetLife  All For

Pay attention - limited upside

The 3 months correlation between MetLife and All is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and All For One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All For One 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 All For. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All For One has no effect on the direction of MetLife i.e., MetLife and All For go up and down completely randomly.

Pair Corralation between MetLife and All For

If you would invest  7,722  in MetLife on September 3, 2024 and sell it today you would earn a total of  966.00  from holding MetLife or generate 12.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MetLife  vs.  All For One

MetLife

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, MetLife may actually be approaching a critical reversion point that can send shares even higher in January 2025.

All For One

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days All For One has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, All For is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MetLife and All For

The main advantage of trading using opposite MetLife and All For positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, All For 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 All For will offset losses from the drop in All For's long position.

The idea behind MetLife and All For One pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.