Correlation Between ViroGates and MetLife
Can any of the company-specific risk be diversified away by investing in both ViroGates 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 ViroGates and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ViroGates AS and MetLife, you can compare the effects of market volatilities on ViroGates 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 ViroGates with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of ViroGates and MetLife.
Diversification Opportunities for ViroGates and MetLife
Very good diversification
The 3 months correlation between ViroGates and MetLife is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding ViroGates AS and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and ViroGates 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 ViroGates AS 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 ViroGates i.e., ViroGates and MetLife go up and down completely randomly.
Pair Corralation between ViroGates and MetLife
Assuming the 90 days trading horizon ViroGates AS is expected to generate 6.06 times more return on investment than MetLife. However, ViroGates is 6.06 times more volatile than MetLife. It trades about 0.1 of its potential returns per unit of risk. MetLife is currently generating about -0.17 per unit of risk. If you would invest 670.00 in ViroGates AS on February 6, 2024 and sell it today you would earn a total of 68.00 from holding ViroGates AS or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ViroGates AS vs. MetLife
Performance |
| Timeline |
| ViroGates AS |
| MetLife |
ViroGates and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ViroGates and MetLife
The main advantage of trading using opposite ViroGates and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ViroGates 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.| ViroGates vs. Bavarian Nordic | ViroGates vs. Genmab AS | ViroGates vs. GN Store Nord | ViroGates vs. DSV Panalpina AS |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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