Correlation Between TENCENT HOLDINGS and MetLife

By analyzing existing cross correlation between TENCENT HOLDINGS LTD and MetLife, you can compare the effects of market volatilities on TENCENT HOLDINGS 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 TENCENT HOLDINGS with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of TENCENT HOLDINGS and MetLife.

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Can any of the company-specific risk be diversified away by investing in both TENCENT HOLDINGS 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 TENCENT HOLDINGS and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for TENCENT HOLDINGS and MetLife

0.55
  Correlation Coefficient
TENCENT HOLDINGS LTD
MetLife

Very weak diversification

The 3 months correlation between TENCENT and MetLife is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TENCENT HOLDINGS LTD UNS ADR and MetLife Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MetLife and TENCENT HOLDINGS 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 TENCENT HOLDINGS LTD 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 TENCENT HOLDINGS i.e. TENCENT HOLDINGS and MetLife go up and down completely randomly.

Pair Corralation between TENCENT HOLDINGS and MetLife

Assuming the 30 trading days horizon, TENCENT HOLDINGS LTD is expected to generate 0.65 times more return on investment than MetLife. However, TENCENT HOLDINGS LTD is 1.54 times less risky than MetLife. It trades about 0.16 of its potential returns per unit of risk. MetLife is currently generating about 0.07 per unit of risk. If you would invest  4,620  in TENCENT HOLDINGS LTD on June 6, 2020 and sell it today you would earn a total of  920.00  from holding TENCENT HOLDINGS LTD or generate 19.91% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy83.87%
ValuesDaily Returns

TENCENT HOLDINGS LTD UNS ADR  vs.  MetLife Inc

 Performance (%) 
      Timeline 
TENCENT HOLDINGS LTD 
1010

TENCENT HOLDINGS Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in TENCENT HOLDINGS LTD are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, TENCENT HOLDINGS layed out solid returns over the last few months and may actually be approaching a breakup point.
MetLife 
44

MetLife Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively sluggish essential indicators, MetLife unveiled solid returns over the last few months and may actually be approaching a breakup point.

TENCENT HOLDINGS and MetLife Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Instant Ratings module to determine any equity ratings based on digital recommendations. macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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