Correlation Between American Equity and FG Annuities
Can any of the company-specific risk be diversified away by investing in both American Equity 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 American Equity and FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Equity Investment and FG Annuities Life, you can compare the effects of market volatilities on American Equity 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 American Equity with a short position of FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Equity and FG Annuities.
Diversification Opportunities for American Equity and FG Annuities
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and FG Annuities is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding American Equity Investment 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 American Equity 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 American Equity Investment 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 American Equity i.e., American Equity and FG Annuities go up and down completely randomly.
Pair Corralation between American Equity and FG Annuities
If you would invest 4,264 in FG Annuities Life on August 24, 2024 and sell it today you would earn a total of 446.00 from holding FG Annuities Life or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
American Equity Investment vs. FG Annuities Life
Performance |
| Timeline |
| American Equity Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FG Annuities Life |
American Equity and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Equity and FG Annuities
The main advantage of trading using opposite American Equity and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Equity 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.| American Equity vs. MetLife Preferred Stock | American Equity vs. Prudential Public Limited | American Equity vs. MetLife Preferred Stock | American Equity vs. Jackson Financial |
| FG Annuities vs. Manulife Financial Corp | FG Annuities vs. Brighthouse Financial | FG Annuities 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |