Correlation Between Lord Abbett and MetLife
Can any of the company-specific risk be diversified away by investing in both Lord Abbett 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 Lord Abbett and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Abbett Corporate and MetLife, you can compare the effects of market volatilities on Lord Abbett 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 Lord Abbett with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Abbett and MetLife.
Diversification Opportunities for Lord Abbett and MetLife
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lord and MetLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Abbett Corporate and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Lord Abbett 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 Lord Abbett Corporate 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 Lord Abbett i.e., Lord Abbett and MetLife go up and down completely randomly.
Pair Corralation between Lord Abbett and MetLife
If you would invest 6,835 in MetLife on January 19, 2024 and sell it today you would earn a total of 57.00 from holding MetLife or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lord Abbett Corporate vs. MetLife
Performance |
| Timeline |
| Lord Abbett Corporate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MetLife |
Lord Abbett and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Abbett and MetLife
The main advantage of trading using opposite Lord Abbett and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Abbett 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.| Lord Abbett vs. Goldman Sachs Emerging | Lord Abbett vs. Franklin High Yield | Lord Abbett vs. Dreyfusstandish Global Fixed | Lord Abbett vs. Ab Bond Inflation |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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