Correlation Between Vakif Finansal and MetLife
Can any of the company-specific risk be diversified away by investing in both Vakif Finansal 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 Vakif Finansal and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vakif Finansal Kiralama and MetLife, you can compare the effects of market volatilities on Vakif Finansal 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 Vakif Finansal with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vakif Finansal and MetLife.
Diversification Opportunities for Vakif Finansal and MetLife
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vakif and MetLife is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Vakif Finansal Kiralama and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Vakif Finansal 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 Vakif Finansal Kiralama 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 Vakif Finansal i.e., Vakif Finansal and MetLife go up and down completely randomly.
Pair Corralation between Vakif Finansal and MetLife
Assuming the 90 days trading horizon Vakif Finansal Kiralama is expected to generate 3.45 times more return on investment than MetLife. However, Vakif Finansal is 3.45 times more volatile than MetLife. It trades about 0.32 of its potential returns per unit of risk. MetLife is currently generating about -0.02 per unit of risk. If you would invest 273.00 in Vakif Finansal Kiralama on January 26, 2024 and sell it today you would earn a total of 53.00 from holding Vakif Finansal Kiralama or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Vakif Finansal Kiralama vs. MetLife
Performance |
| Timeline |
| Vakif Finansal Kiralama |
| MetLife |
Vakif Finansal and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vakif Finansal and MetLife
The main advantage of trading using opposite Vakif Finansal and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vakif Finansal 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.| Vakif Finansal vs. Euro Trend Yatirim | Vakif Finansal vs. Hedef Girisim Sermayesi | Vakif Finansal vs. Atlas Menkul Kiymetler |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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