Correlation Between Express Scripts and MetLife
Can any of the company-specific risk be diversified away by investing in both Express Scripts 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 Express Scripts and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Express Scripts Holding and MetLife, you can compare the effects of market volatilities on Express Scripts 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 Express Scripts with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Express Scripts and MetLife.
Diversification Opportunities for Express Scripts and MetLife
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Express and MetLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Express Scripts Holding and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Express Scripts 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 Express Scripts Holding 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 Express Scripts i.e., Express Scripts and MetLife go up and down completely randomly.
Pair Corralation between Express Scripts and MetLife
If you would invest (100.00) in Express Scripts Holding on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Express Scripts Holding or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Express Scripts Holding vs. MetLife
Performance |
Timeline |
Express Scripts Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MetLife |
Express Scripts and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Express Scripts and MetLife
The main advantage of trading using opposite Express Scripts and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Express Scripts 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.Express Scripts vs. Japan Tobacco ADR | Express Scripts vs. WPP PLC ADR | Express Scripts vs. Magnite | Express Scripts vs. BRC Inc |
MetLife vs. Lincoln National | MetLife vs. Aflac Incorporated | MetLife vs. Unum Group | MetLife vs. Manulife Financial Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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