Correlation Between MetLife and CeCors
Can any of the company-specific risk be diversified away by investing in both MetLife and CeCors 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 CeCors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and CeCors Inc, you can compare the effects of market volatilities on MetLife and CeCors 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 CeCors. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and CeCors.
Diversification Opportunities for MetLife and CeCors
Good diversification
The 3 months correlation between MetLife and CeCors is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and CeCors Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CeCors Inc 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 CeCors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CeCors Inc has no effect on the direction of MetLife i.e., MetLife and CeCors go up and down completely randomly.
Pair Corralation between MetLife and CeCors
Considering the 90-day investment horizon MetLife is expected to generate 0.08 times more return on investment than CeCors. However, MetLife is 13.16 times less risky than CeCors. It trades about 0.04 of its potential returns per unit of risk. CeCors Inc is currently generating about -0.05 per unit of risk. If you would invest 8,099 in MetLife on December 28, 2024 and sell it today you would earn a total of 206.00 from holding MetLife or generate 2.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MetLife vs. CeCors Inc
Performance |
Timeline |
MetLife |
CeCors Inc |
MetLife and CeCors Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MetLife and CeCors
The main advantage of trading using opposite MetLife and CeCors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, CeCors 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 CeCors will offset losses from the drop in CeCors' long position.MetLife vs. Aflac Incorporated | MetLife vs. Globe Life | MetLife vs. CNO Financial Group | MetLife vs. Brighthouse Financial |
CeCors vs. BioLife Sciences | CeCors vs. Innerscope Advertising Agency | CeCors vs. GlucoTrack | CeCors vs. Sharps 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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