Correlation Between MetLife and FG Annuities

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MetLife and FG Annuities 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 FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetLife and FG Annuities Life, you can compare the effects of market volatilities on MetLife and FG Annuities 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 FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetLife and FG Annuities.

Diversification Opportunities for MetLife and FG Annuities

-0.63
  Correlation Coefficient

Excellent diversification

The 3 months correlation between MetLife and FG Annuities is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MetLife and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life 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 FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of MetLife i.e., MetLife and FG Annuities go up and down completely randomly.

Pair Corralation between MetLife and FG Annuities

Considering the 90-day investment horizon MetLife is expected to generate 9.91 times less return on investment than FG Annuities. But when comparing it to its historical volatility, MetLife is 2.63 times less risky than FG Annuities. It trades about 0.02 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,615  in FG Annuities Life on December 29, 2023 and sell it today you would earn a total of  2,440  from holding FG Annuities Life or generate 151.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy68.28%
ValuesDaily Returns

MetLife  vs.  FG Annuities Life

 Performance 
       Timeline  
MetLife 

Risk-Adjusted Performance

13 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in MetLife are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, MetLife unveiled solid returns over the last few months and may actually be approaching a breakup point.
FG Annuities Life 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days FG Annuities Life has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

MetLife and FG Annuities Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MetLife and FG Annuities

The main advantage of trading using opposite MetLife and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetLife position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.
The idea behind MetLife and FG Annuities Life pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.