Correlation Between SBERBANK and MetLife

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

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

Diversification Opportunities for SBERBANK and MetLife

0.59
  Correlation Coefficient
SBERBANK OF RUSSIA
MetLife

Very weak diversification

The 3 months correlation between SBERBANK and MetLife is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding SBERBANK OF RUSSIA and MetLife Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on MetLife and SBERBANK 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 SBERBANK OF RUSSIA 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 SBERBANK i.e. SBERBANK and MetLife go up and down completely randomly.

Pair Corralation between SBERBANK and MetLife

Assuming the 30 trading days horizon, SBERBANK OF RUSSIA is expected to generate 0.81 times more return on investment than MetLife. However, SBERBANK OF RUSSIA is 1.23 times less risky than MetLife. It trades about 0.06 of its potential returns per unit of risk. MetLife is currently generating about 0.03 per unit of risk. If you would invest  19,737  in SBERBANK OF RUSSIA on June 10, 2020 and sell it today you would earn a total of  1,271  from holding SBERBANK OF RUSSIA or generate 6.44% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy84.13%
ValuesDaily Returns

SBERBANK OF RUSSIA  vs.  MetLife Inc

 Performance (%) 
      Timeline 
SBERBANK OF RUSSIA 
33

SBERBANK Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in SBERBANK OF RUSSIA are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, SBERBANK may actually be approaching a critical reversion point that can send shares even higher in August 2020.
MetLife 
22

MetLife Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively sluggish essential indicators, MetLife may actually be approaching a critical reversion point that can send shares even higher in August 2020.

SBERBANK and MetLife Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.


 
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