Correlation Between MetLife and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both MetLife and Jackpot Digital 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 Jackpot Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and Jackpot Digital, you can compare the effects of market volatilities on MetLife and Jackpot Digital 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 Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and Jackpot Digital.
Diversification Opportunities for MetLife and Jackpot Digital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MetLife and Jackpot is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of MetLife i.e., MetLife and Jackpot Digital go up and down completely randomly.
Pair Corralation between MetLife and Jackpot Digital
Considering the 90-day investment horizon MetLife is expected to generate 0.28 times more return on investment than Jackpot Digital. However, MetLife is 3.57 times less risky than Jackpot Digital. It trades about 0.16 of its potential returns per unit of risk. Jackpot Digital is currently generating about 0.0 per unit of risk. If you would invest 7,356 in MetLife on September 6, 2024 and sell it today you would earn a total of 1,182 from holding MetLife or generate 16.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.44% |
Values | Daily Returns |
MetLife vs. Jackpot Digital
Performance |
Timeline |
MetLife |
Jackpot Digital |
MetLife and Jackpot Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MetLife and Jackpot Digital
The main advantage of trading using opposite MetLife and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.MetLife vs. Aflac Incorporated | MetLife vs. Manulife Financial Corp | MetLife vs. Jackson Financial | MetLife vs. CNO Financial Group |
Jackpot Digital vs. Intema Solutions | Jackpot Digital vs. 888 Holdings | Jackpot Digital vs. Royal Wins | Jackpot Digital vs. Churchill Downs Incorporated |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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