Correlation Between HAVILAH RESOURCES and MetLife
Can any of the company-specific risk be diversified away by investing in both HAVILAH RESOURCES 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 HAVILAH RESOURCES and MetLife into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAVILAH RESOURCES and MetLife, you can compare the effects of market volatilities on HAVILAH RESOURCES 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 HAVILAH RESOURCES with a short position of MetLife. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAVILAH RESOURCES and MetLife.
Diversification Opportunities for HAVILAH RESOURCES and MetLife
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HAVILAH and MetLife is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding HAVILAH RESOURCES and MetLife in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MetLife and HAVILAH RESOURCES 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 HAVILAH RESOURCES 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 HAVILAH RESOURCES i.e., HAVILAH RESOURCES and MetLife go up and down completely randomly.
Pair Corralation between HAVILAH RESOURCES and MetLife
Assuming the 90 days trading horizon HAVILAH RESOURCES is expected to generate 6.1 times more return on investment than MetLife. However, HAVILAH RESOURCES is 6.1 times more volatile than MetLife. It trades about 0.18 of its potential returns per unit of risk. MetLife is currently generating about -0.02 per unit of risk. If you would invest 9.25 in HAVILAH RESOURCES on January 26, 2024 and sell it today you would earn a total of 1.75 from holding HAVILAH RESOURCES or generate 18.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
HAVILAH RESOURCES vs. MetLife
Performance |
Timeline |
HAVILAH RESOURCES |
MetLife |
HAVILAH RESOURCES and MetLife Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HAVILAH RESOURCES and MetLife
The main advantage of trading using opposite HAVILAH RESOURCES and MetLife positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAVILAH RESOURCES 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.HAVILAH RESOURCES vs. Gladstone Investment | HAVILAH RESOURCES vs. BRIT AMER TOBACCO | HAVILAH RESOURCES vs. Virtus Investment Partners | HAVILAH RESOURCES vs. Apollo Investment Corp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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