Correlation Between Oeneo SA and MetLife
Can any of the company-specific risk be diversified away by investing in both Oeneo SA 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 Oeneo SA and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oeneo SA and MetLife, you can compare the effects of market volatilities on Oeneo SA 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 Oeneo SA with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oeneo SA and MetLife.
Diversification Opportunities for Oeneo SA and MetLife
Pay attention - limited upside
The 3 months correlation between Oeneo and MetLife is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Oeneo SA and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and Oeneo SA 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 Oeneo SA 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 Oeneo SA i.e., Oeneo SA and MetLife go up and down completely randomly.
Pair Corralation between Oeneo SA and MetLife
Assuming the 90 days trading horizon Oeneo SA is expected to generate 3.15 times more return on investment than MetLife. However, Oeneo SA is 3.15 times more volatile than MetLife. It trades about 0.05 of its potential returns per unit of risk. MetLife is currently generating about -0.29 per unit of risk. If you would invest 990.00 in Oeneo SA on January 19, 2024 and sell it today you would earn a total of 20.00 from holding Oeneo SA or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oeneo SA vs. MetLife
Performance |
| Timeline |
| Oeneo SA |
| MetLife |
Oeneo SA and MetLife Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oeneo SA and MetLife
The main advantage of trading using opposite Oeneo SA and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oeneo SA 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.| Oeneo SA vs. LOreal SA | Oeneo SA vs. Danone SA | Oeneo SA vs. Compagnie Generale des | Oeneo SA vs. Air Liquide SA |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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