Correlation Between Allstate Corp and Ecofin Global
Can any of the company-specific risk be diversified away by investing in both Allstate Corp and Ecofin Global 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 Allstate Corp and Ecofin Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allstate Corp and Ecofin Global Utilities, you can compare the effects of market volatilities on Allstate Corp and Ecofin Global 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 Allstate Corp with a short position of Ecofin Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstate Corp and Ecofin Global.
Diversification Opportunities for Allstate Corp and Ecofin Global
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allstate and Ecofin is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Allstate Corp and Ecofin Global Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecofin Global Utilities and Allstate Corp 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 Allstate Corp are associated (or correlated) with Ecofin Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecofin Global Utilities has no effect on the direction of Allstate Corp i.e., Allstate Corp and Ecofin Global go up and down completely randomly.
Pair Corralation between Allstate Corp and Ecofin Global
Assuming the 90 days trading horizon Allstate Corp is expected to generate 1.27 times more return on investment than Ecofin Global. However, Allstate Corp is 1.27 times more volatile than Ecofin Global Utilities. It trades about 0.07 of its potential returns per unit of risk. Ecofin Global Utilities is currently generating about -0.02 per unit of risk. If you would invest 11,784 in Allstate Corp on October 9, 2024 and sell it today you would earn a total of 7,558 from holding Allstate Corp or generate 64.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.77% |
| Values | Daily Returns |
Allstate Corp vs. Ecofin Global Utilities
Performance |
| Timeline |
| Allstate Corp |
| Ecofin Global Utilities |
Allstate Corp and Ecofin Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstate Corp and Ecofin Global
The main advantage of trading using opposite Allstate Corp and Ecofin Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstate Corp position performs unexpectedly, Ecofin Global 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 Ecofin Global will offset losses from the drop in Ecofin Global's long position.| Allstate Corp vs. Walmart | Allstate Corp vs. BYD Co | Allstate Corp vs. Volkswagen AG | Allstate Corp vs. Volkswagen AG Non Vtg |
| Ecofin Global vs. Seche Environnement SA | Ecofin Global vs. Induction Healthcare Group | Ecofin Global vs. United States Steel | Ecofin Global vs. Iron Mountain |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |