Correlation Between RBL Bank and MetLife

By analyzing existing cross correlation between RBL Bank Limited and MetLife, you can compare the effects of market volatilities on RBL Bank 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 RBL Bank with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBL Bank and MetLife.

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Can any of the company-specific risk be diversified away by investing in both RBL Bank 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 RBL Bank and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for RBL Bank and MetLife

-0.01
  Correlation Coefficient
RBL Bank Limited
MetLife

Good diversification

The 3 months correlation between RBLBANK and MetLife is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding RBL Bank Limited and MetLife Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MetLife and RBL Bank 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 RBL Bank Limited 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 RBL Bank i.e. RBL Bank and MetLife go up and down completely randomly.

Pair Corralation between RBL Bank and MetLife

Assuming the 30 trading days horizon, RBL Bank Limited is expected to generate 1.78 times more return on investment than MetLife. However, RBL Bank is 1.78 times more volatile than MetLife. It trades about 0.14 of its potential returns per unit of risk. MetLife is currently generating about 0.02 per unit of risk. If you would invest  12,080  in RBL Bank Limited on June 8, 2020 and sell it today you would earn a total of  5,270  from holding RBL Bank Limited or generate 43.63% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy87.1%
ValuesDaily Returns

RBL Bank Limited  vs.  MetLife Inc

 Performance (%) 
      Timeline 
RBL Bank Limited 
99

RBL Bank Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in RBL Bank Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days. Regardless of fairly weak technical and fundamental indicators, RBL Bank demonstrated solid returns over the last few months and may actually be approaching a breakup point.
MetLife 
11

MetLife Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively unchanging essential indicators, MetLife is not utilizing all of its potentials. The new stock price uproar, may contribute to short horizon losses for the private investors.

RBL Bank and MetLife Volatility Contrast

 Predicted Return Density 
      Returns 
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