Correlation Between Singular Genomics and MetLife

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

By analyzing existing cross correlation between Singular Genomics Systems and MetLife, you can compare the effects of market volatilities on Singular Genomics 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 Singular Genomics with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Genomics and MetLife.

Diversification Opportunities for Singular Genomics and MetLife

0.34

Correlation Coefficient

Singular Genomics  MetLife

Weak diversification

The 3 months correlation between Singular and MetLife is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Singular Genomics Systems and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Singular Genomics 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 Singular Genomics Systems 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 Singular Genomics i.e., Singular Genomics and MetLife go up and down completely randomly.

Pair Corralation between Singular Genomics and MetLife

Given the investment horizon of 90 days Singular Genomics Systems is expected to under-perform the MetLife. In addition to that, Singular Genomics is 1.22 times more volatile than MetLife. It trades about -0.08 of its total potential returns per unit of risk. MetLife is currently generating about 0.0 per unit of volatility. If you would invest  8,632  in MetLife on December 2, 2024 and sell it today you would lose (14.00) from holding MetLife or give up 0.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.8%
Values	Daily Returns

Singular Genomics Systems  vs.  MetLife

Singular Genomics Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singular Genomics Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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.

Pair Trading with Singular Genomics and MetLife

The main advantage of trading using opposite Singular Genomics and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Genomics 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.

The idea behind Singular Genomics Systems and MetLife 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..