Correlation Between MetLife and SentinelOne
Can any of the company-specific risk be diversified away by investing in both MetLife and SentinelOne 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 MetLife and SentinelOne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and SentinelOne, you can compare the effects of market volatilities on MetLife and SentinelOne 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 MetLife with a short position of SentinelOne. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and SentinelOne.
Diversification Opportunities for MetLife and SentinelOne
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MetLife and SentinelOne is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and SentinelOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SentinelOne and MetLife 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 MetLife are associated (or correlated) with SentinelOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SentinelOne has no effect on the direction of MetLife i.e., MetLife and SentinelOne go up and down completely randomly.
Pair Corralation between MetLife and SentinelOne
Considering the 90-day investment horizon MetLife is expected to generate 0.15 times more return on investment than SentinelOne. However, MetLife is 6.74 times less risky than SentinelOne. It trades about 0.46 of its potential returns per unit of risk. SentinelOne is currently generating about -0.17 per unit of risk. If you would invest 6,916 in MetLife on December 29, 2023 and sell it today you would earn a total of 495.00 from holding MetLife or generate 7.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MetLife vs. SentinelOne
Performance |
Timeline |
MetLife |
SentinelOne |
MetLife and SentinelOne Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MetLife and SentinelOne
The main advantage of trading using opposite MetLife and SentinelOne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, SentinelOne 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 SentinelOne will offset losses from the drop in SentinelOne's long position.MetLife vs. CNO Financial Group | MetLife vs. Abacus Life | MetLife vs. Qualcomm Incorporated | MetLife vs. Alphabet Class C |
SentinelOne vs. Global Blue Group | SentinelOne vs. Aurora Mobile | SentinelOne vs. Marqeta | SentinelOne vs. Nextnav Acquisition 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |