Correlation Between IShares MSCI and MetLife
Can any of the company-specific risk be diversified away by investing in both IShares MSCI 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 IShares MSCI and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares MSCI Global and MetLife, you can compare the effects of market volatilities on IShares MSCI 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 IShares MSCI with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares MSCI and MetLife.
Diversification Opportunities for IShares MSCI and MetLife
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IShares and MetLife is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding iShares MSCI Global and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and IShares MSCI 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 iShares MSCI Global 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 IShares MSCI i.e., IShares MSCI and MetLife go up and down completely randomly.
Pair Corralation between IShares MSCI and MetLife
Considering the 90-day investment horizon iShares MSCI Global is expected to under-perform the MetLife. In addition to that, IShares MSCI is 1.05 times more volatile than MetLife. It trades about -0.02 of its total potential returns per unit of risk. MetLife is currently generating about 0.17 per unit of volatility. If you would invest 6,857 in MetLife on January 25, 2024 and sell it today you would earn a total of 396.00 from holding MetLife or generate 5.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
iShares MSCI Global vs. MetLife
Performance |
Timeline |
iShares MSCI Global |
MetLife |
IShares MSCI and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IShares MSCI and MetLife
The main advantage of trading using opposite IShares MSCI and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares MSCI 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.IShares MSCI vs. SPDR MSCI EAFE | IShares MSCI vs. SPDR MSCI Emerging | IShares MSCI vs. SPDR MSCI USA | IShares MSCI vs. SPDR SP 1500 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
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 |