Correlation Between Migdal Mutual and MetLife
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By analyzing existing cross correlation between Migdal Mutual Funds and MetLife, you can compare the effects of market volatilities on Migdal Mutual 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 Migdal Mutual with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migdal Mutual and MetLife.
Diversification Opportunities for Migdal Mutual and MetLife
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Migdal and MetLife is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Migdal Mutual Funds and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Migdal Mutual 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 Migdal Mutual Funds 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 Migdal Mutual i.e., Migdal Mutual and MetLife go up and down completely randomly.
Pair Corralation between Migdal Mutual and MetLife
Assuming the 90 days trading horizon Migdal Mutual Funds is expected to generate 1.06 times more return on investment than MetLife. However, Migdal Mutual is 1.06 times more volatile than MetLife. It trades about -0.11 of its potential returns per unit of risk. MetLife is currently generating about -0.17 per unit of risk. If you would invest 888,800 in Migdal Mutual Funds on January 19, 2024 and sell it today you would lose (17,000) from holding Migdal Mutual Funds or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Migdal Mutual Funds vs. MetLife
Performance |
| Timeline |
| Migdal Mutual Funds |
| MetLife |
Migdal Mutual and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migdal Mutual and MetLife
The main advantage of trading using opposite Migdal Mutual and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migdal Mutual 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.| Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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