Correlation Between Odico AS and MetLife
Can any of the company-specific risk be diversified away by investing in both Odico AS 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 Odico AS and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Odico AS and MetLife, you can compare the effects of market volatilities on Odico AS 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 Odico AS with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Odico AS and MetLife.
Diversification Opportunities for Odico AS and MetLife
Pay attention - limited upside
The 3 months correlation between Odico and MetLife is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Odico AS and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Odico AS 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 Odico AS 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 Odico AS i.e., Odico AS and MetLife go up and down completely randomly.
Pair Corralation between Odico AS and MetLife
If you would invest 39.00 in Odico AS on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Odico AS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Odico AS vs. MetLife
Performance |
| Timeline |
| Odico AS |
| MetLife |
Odico AS and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Odico AS and MetLife
The main advantage of trading using opposite Odico AS and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Odico AS 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.The idea behind Odico AS and MetLife pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |