Correlation Between Atreyu Capital and MetLife
Can any of the company-specific risk be diversified away by investing in both Atreyu Capital 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 Atreyu Capital and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atreyu Capital Markets and MetLife, you can compare the effects of market volatilities on Atreyu Capital 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 Atreyu Capital with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atreyu Capital and MetLife.
Diversification Opportunities for Atreyu Capital and MetLife
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atreyu and MetLife is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Atreyu Capital Markets and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Atreyu Capital 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 Atreyu Capital Markets 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 Atreyu Capital i.e., Atreyu Capital and MetLife go up and down completely randomly.
Pair Corralation between Atreyu Capital and MetLife
Assuming the 90 days trading horizon Atreyu Capital Markets is expected to generate 1.69 times more return on investment than MetLife. However, Atreyu Capital is 1.69 times more volatile than MetLife. It trades about 0.11 of its potential returns per unit of risk. MetLife is currently generating about 0.15 per unit of risk. If you would invest 424,111 in Atreyu Capital Markets on January 19, 2024 and sell it today you would earn a total of 94,089 from holding Atreyu Capital Markets or generate 22.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.93% |
| Values | Daily Returns |
Atreyu Capital Markets vs. MetLife
Performance |
| Timeline |
| Atreyu Capital Markets |
| MetLife |
Atreyu Capital and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atreyu Capital and MetLife
The main advantage of trading using opposite Atreyu Capital and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atreyu Capital 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.| Atreyu Capital vs. Rani Zim Shopping | Atreyu Capital vs. Accel Solutions Group | Atreyu Capital vs. Rapac Communication Infrastructure |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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