Correlation Between Twitter and MetLife
Can any of the company-specific risk be diversified away by investing in both Twitter 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 Twitter and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Twitter and MetLife, you can compare the effects of market volatilities on Twitter 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 Twitter with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Twitter and MetLife.
Diversification Opportunities for Twitter and MetLife
Weak diversification
The 3 months correlation between Twitter and MetLife is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Twitter 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 Twitter 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 Twitter i.e., Twitter and MetLife go up and down completely randomly.
Pair Corralation between Twitter and MetLife
If you would invest 5,370 in Twitter on January 25, 2024 and sell it today you would earn a total of 0.00 from holding Twitter or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Twitter vs. MetLife
Performance |
| Timeline |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MetLife |
Twitter and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Twitter and MetLife
The main advantage of trading using opposite Twitter and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter 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.| Twitter vs. Mid Atlantic Home Health | Twitter vs. Planet Fitness | Twitter vs. JBG SMITH Properties | Twitter vs. Bassett Furniture Industries |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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