Correlation Between Ssga High and MetLife
Can any of the company-specific risk be diversified away by investing in both Ssga High 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 Ssga High and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga High Yield and MetLife, you can compare the effects of market volatilities on Ssga High 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 Ssga High with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga High and MetLife.
Diversification Opportunities for Ssga High and MetLife
Pay attention - limited upside
The 3 months correlation between Ssga and MetLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ssga High Yield and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Ssga High 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 Ssga High Yield 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 Ssga High i.e., Ssga High and MetLife go up and down completely randomly.
Pair Corralation between Ssga High and MetLife
If you would invest (100.00) in Ssga High Yield on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Ssga High Yield 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 |
Ssga High Yield vs. MetLife
Performance |
| Timeline |
| Ssga High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MetLife |
Ssga High and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga High and MetLife
The main advantage of trading using opposite Ssga High and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga High 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.| Ssga High vs. Rational Strategic Allocation | Ssga High vs. Aqr Large Cap | Ssga High vs. Guidemark Large Cap | Ssga High vs. Artisan Thematic Fund |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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