Correlation Between Abacus Life and Unum
Can any of the company-specific risk be diversified away by investing in both Abacus Life and Unum 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 Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abacus Life and Unum Group, you can compare the effects of market volatilities on Abacus Life and Unum 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 Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abacus Life and Unum.
Diversification Opportunities for Abacus Life and Unum
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Abacus and Unum is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Abacus Life and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group 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 Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of Abacus Life i.e., Abacus Life and Unum go up and down completely randomly.
Pair Corralation between Abacus Life and Unum
Considering the 90-day investment horizon Abacus Life is expected to generate 10.84 times less return on investment than Unum. In addition to that, Abacus Life is 2.3 times more volatile than Unum Group. It trades about 0.0 of its total potential returns per unit of risk. Unum Group is currently generating about 0.09 per unit of volatility. If you would invest 3,914 in Unum Group on August 24, 2024 and sell it today you would earn a total of 3,670 from holding Unum Group or generate 93.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abacus Life vs. Unum Group
Performance |
| Timeline |
| Abacus Life |
| Unum Group |
Abacus Life and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abacus Life and Unum
The main advantage of trading using opposite Abacus Life and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abacus Life position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum'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 |
| Unum vs. Manulife Financial Corp | Unum vs. Brighthouse Financial | Unum vs. FG Annuities Life | Unum vs. Jackson Financial |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |