Correlation Between Hugo Boss and MetLife
Can any of the company-specific risk be diversified away by investing in both Hugo Boss 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 Hugo Boss and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hugo Boss AG and MetLife, you can compare the effects of market volatilities on Hugo Boss 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 Hugo Boss with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hugo Boss and MetLife.
Diversification Opportunities for Hugo Boss and MetLife
Very good diversification
The 3 months correlation between Hugo and MetLife is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hugo Boss AG and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Hugo Boss 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 Hugo Boss AG 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 Hugo Boss i.e., Hugo Boss and MetLife go up and down completely randomly.
Pair Corralation between Hugo Boss and MetLife
Assuming the 90 days trading horizon Hugo Boss AG is expected to under-perform the MetLife. In addition to that, Hugo Boss is 2.54 times more volatile than MetLife. It trades about -0.07 of its total potential returns per unit of risk. MetLife is currently generating about -0.15 per unit of volatility. If you would invest 7,336 in MetLife on January 20, 2024 and sell it today you would lose (225.00) from holding MetLife or give up 3.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Hugo Boss AG vs. MetLife
Performance |
Timeline |
Hugo Boss AG |
MetLife |
Hugo Boss and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hugo Boss and MetLife
The main advantage of trading using opposite Hugo Boss and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hugo Boss 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.Hugo Boss vs. JSC Halyk bank | Hugo Boss vs. GigaMedia | Hugo Boss vs. ZINC MEDIA GR | Hugo Boss vs. Chiba Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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