Correlation Between Tachlit Index and MetLife
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By analyzing existing cross correlation between Tachlit Index Sal and MetLife, you can compare the effects of market volatilities on Tachlit Index 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 Tachlit Index with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tachlit Index and MetLife.
Diversification Opportunities for Tachlit Index and MetLife
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tachlit and MetLife is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tachlit Index Sal and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Tachlit Index 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 Tachlit Index Sal 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 Tachlit Index i.e., Tachlit Index and MetLife go up and down completely randomly.
Pair Corralation between Tachlit Index and MetLife
Assuming the 90 days trading horizon Tachlit Index Sal is expected to generate 1.18 times more return on investment than MetLife. However, Tachlit Index is 1.18 times more volatile than MetLife. It trades about 0.11 of its potential returns per unit of risk. MetLife is currently generating about 0.06 per unit of risk. If you would invest 151,000 in Tachlit Index Sal on January 24, 2024 and sell it today you would earn a total of 10,700 from holding Tachlit Index Sal or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 80.65% |
| Values | Daily Returns |
Tachlit Index Sal vs. MetLife
Performance |
| Timeline |
| Tachlit Index Sal |
| MetLife |
Tachlit Index and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tachlit Index and MetLife
The main advantage of trading using opposite Tachlit Index and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tachlit Index 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.| Tachlit Index vs. Tachlit Indices Mutual | Tachlit Index vs. Tachlit Indices MF | Tachlit Index vs. Tachlit Indices Mutual | Tachlit Index vs. Tachlit Index Sal |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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