Correlation Between AFLAC and Coor Service
Can any of the company-specific risk be diversified away by investing in both AFLAC and Coor Service 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 AFLAC and Coor Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFLAC Inc and Coor Service Management, you can compare the effects of market volatilities on AFLAC and Coor Service 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 AFLAC with a short position of Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFLAC and Coor Service.
Diversification Opportunities for AFLAC and Coor Service
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between AFLAC and Coor is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding AFLAC Inc and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management and AFLAC 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 AFLAC Inc are associated (or correlated) with Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of AFLAC i.e., AFLAC and Coor Service go up and down completely randomly.
Pair Corralation between AFLAC and Coor Service
Assuming the 90 days trading horizon AFLAC Inc is expected to generate 0.62 times more return on investment than Coor Service. However, AFLAC Inc is 1.62 times less risky than Coor Service. It trades about -0.03 of its potential returns per unit of risk. Coor Service Management is currently generating about -0.19 per unit of risk. If you would invest 10,712 in AFLAC Inc on September 12, 2024 and sell it today you would lose (299.00) from holding AFLAC Inc or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
AFLAC Inc vs. Coor Service Management
Performance |
| Timeline |
| AFLAC Inc |
| Coor Service Management |
AFLAC and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFLAC and Coor Service
The main advantage of trading using opposite AFLAC and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFLAC position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| AFLAC vs. Synchrony Financial | AFLAC vs. Erste Group Bank | AFLAC vs. Ecclesiastical Insurance Office | AFLAC vs. MT Bank Corp |
| Coor Service vs. Blackstone Loan Financing | Coor Service vs. One Media iP | Coor Service vs. Live Nation Entertainment | Coor Service vs. Grand Vision Media |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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