Correlation Between Abacus Life and American National
Can any of the company-specific risk be diversified away by investing in both Abacus Life and American National 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 Abacus Life and American National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abacus Life and American National Group, you can compare the effects of market volatilities on Abacus Life and American National 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 Abacus Life with a short position of American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Life and American National.
Diversification Opportunities for Abacus Life and American National
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abacus and American is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Life and American National Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American National and Abacus Life 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 Abacus Life are associated (or correlated) with American National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American National has no effect on the direction of Abacus Life i.e., Abacus Life and American National go up and down completely randomly.
Pair Corralation between Abacus Life and American National
Considering the 90-day investment horizon Abacus Life is expected to generate 1.32 times less return on investment than American National. In addition to that, Abacus Life is 5.71 times more volatile than American National Group. It trades about 0.01 of its total potential returns per unit of risk. American National Group is currently generating about 0.05 per unit of volatility. If you would invest 2,160 in American National Group on August 31, 2024 and sell it today you would earn a total of 341.00 from holding American National Group or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Abacus Life vs. American National Group
Performance |
| Timeline |
| Abacus Life |
| American National |
Abacus Life and American National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abacus Life and American National
The main advantage of trading using opposite Abacus Life and American National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abacus Life position performs unexpectedly, American National 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 American National will offset losses from the drop in American National's long position.| Abacus Life vs. FG Annuities Life | Abacus Life vs. Globe Life | Abacus Life vs. MetLife Preferred Stock | Abacus Life vs. MetLife Preferred Stock |
| American National vs. FG Annuities Life | American National vs. Globe Life | American National vs. MetLife Preferred Stock | American National vs. MetLife Preferred Stock |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |