Correlation Between Danske Invest and MetLife
Can any of the company-specific risk be diversified away by investing in both Danske Invest 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 Danske Invest and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Danske Invest and MetLife, you can compare the effects of market volatilities on Danske Invest 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 Danske Invest with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Danske Invest and MetLife.
Diversification Opportunities for Danske Invest and MetLife
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Danske and MetLife is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Danske Invest and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Danske Invest 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 Danske Invest 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 Danske Invest i.e., Danske Invest and MetLife go up and down completely randomly.
Pair Corralation between Danske Invest and MetLife
Assuming the 90 days trading horizon Danske Invest is expected to generate 0.1 times more return on investment than MetLife. However, Danske Invest is 10.0 times less risky than MetLife. It trades about -0.13 of its potential returns per unit of risk. MetLife is currently generating about -0.02 per unit of risk. If you would invest 9,077 in Danske Invest on January 26, 2024 and sell it today you would lose (21.00) from holding Danske Invest or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Danske Invest vs. MetLife
Performance |
| Timeline |
| Danske Invest |
| MetLife |
Danske Invest and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Danske Invest and MetLife
The main advantage of trading using opposite Danske Invest and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Danske Invest 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.| Danske Invest vs. Novo Nordisk AS | Danske Invest vs. Nordea Bank Abp | Danske Invest vs. DSV Panalpina AS | Danske Invest vs. AP Mller |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |