Correlation Between XTL Biopharmaceutica and MetLife
Can any of the company-specific risk be diversified away by investing in both XTL Biopharmaceutica 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 XTL Biopharmaceutica and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XTL Biopharmaceuticals and MetLife, you can compare the effects of market volatilities on XTL Biopharmaceutica 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 XTL Biopharmaceutica with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of XTL Biopharmaceutica and MetLife.
Diversification Opportunities for XTL Biopharmaceutica and MetLife
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XTL and MetLife is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding XTL Biopharmaceuticals and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and XTL Biopharmaceutica 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 XTL Biopharmaceuticals 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 XTL Biopharmaceutica i.e., XTL Biopharmaceutica and MetLife go up and down completely randomly.
Pair Corralation between XTL Biopharmaceutica and MetLife
Assuming the 90 days trading horizon XTL Biopharmaceuticals is expected to generate 13.09 times more return on investment than MetLife. However, XTL Biopharmaceutica is 13.09 times more volatile than MetLife. It trades about 0.12 of its potential returns per unit of risk. MetLife is currently generating about 0.1 per unit of risk. If you would invest 340.00 in XTL Biopharmaceuticals on January 17, 2024 and sell it today you would earn a total of 660.00 from holding XTL Biopharmaceuticals or generate 194.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.11% |
| Values | Daily Returns |
XTL Biopharmaceuticals vs. MetLife
Performance |
| Timeline |
| XTL Biopharmaceuticals |
| MetLife |
XTL Biopharmaceutica and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XTL Biopharmaceutica and MetLife
The main advantage of trading using opposite XTL Biopharmaceutica and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTL Biopharmaceutica 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.| XTL Biopharmaceutica vs. Nice | XTL Biopharmaceutica vs. Bank Leumi Le Israel | XTL Biopharmaceutica vs. ICL Israel Chemicals | XTL Biopharmaceutica vs. Mizrahi Tefahot |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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