Correlation Between MetLife and 74368CBL7

Can any of the company-specific risk be diversified away by investing in both MetLife and 74368CBL7 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 74368CBL7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MetLife and PL 3218 28 MAR 25, you can compare the effects of market volatilities on MetLife and 74368CBL7 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 74368CBL7. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and 74368CBL7.

Diversification Opportunities for MetLife and 74368CBL7

0.12

Correlation Coefficient

MetLife  74368CBL7

Average diversification

The 3 months correlation between MetLife and 74368CBL7 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and PL 3218 28 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PL 3218 28 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 74368CBL7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PL 3218 28 has no effect on the direction of MetLife i.e., MetLife and 74368CBL7 go up and down completely randomly.

Pair Corralation between MetLife and 74368CBL7

Considering the 90-day investment horizon MetLife is expected to generate 2.92 times less return on investment than 74368CBL7. In addition to that, MetLife is 41.13 times more volatile than PL 3218 28 MAR 25. It trades about 0.0 of its total potential returns per unit of risk. PL 3218 28 MAR 25 is currently generating about 0.55 per unit of volatility. If you would invest  9,944  in PL 3218 28 MAR 25 on December 2, 2024 and sell it today you would earn a total of  47.00  from holding PL 3218 28 MAR 25 or generate 0.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	42.62%
Values	Daily Returns

MetLife  vs.  PL 3218 28 MAR 25

MetLife

Risk-Adjusted Performance

Very Weak

Over the last 90 days MetLife has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, MetLife is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

PL 3218 28

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in PL 3218 28 MAR 25 are ranked lower than 43 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 74368CBL7 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MetLife and 74368CBL7

The main advantage of trading using opposite MetLife and 74368CBL7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, 74368CBL7 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 74368CBL7 will offset losses from the drop in 74368CBL7's long position.

The idea behind MetLife and PL 3218 28 MAR 25 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.

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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 Anywhere module to track or share privately all of your investments from the convenience of any device.