Correlation Between State Street and MetLife
Can any of the company-specific risk be diversified away by investing in both State Street 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 State Street and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Street Disciplined and MetLife, you can compare the effects of market volatilities on State Street 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 State Street with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Street and MetLife.
Diversification Opportunities for State Street and MetLife
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and MetLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding State Street Disciplined and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and State Street 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 State Street Disciplined 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 State Street i.e., State Street and MetLife go up and down completely randomly.
Pair Corralation between State Street and MetLife
If you would invest (100.00) in State Street Disciplined on January 20, 2024 and sell it today you would earn a total of 100.00 from holding State Street Disciplined or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
State Street Disciplined vs. MetLife
Performance |
Timeline |
State Street Disciplined |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MetLife |
State Street and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with State Street and MetLife
The main advantage of trading using opposite State Street and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Street 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.State Street vs. Ab Centrated Growth | State Street vs. Needham Aggressive Growth | State Street vs. Pnc International Growth | State Street vs. Tfa Alphagen Growth |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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