Correlation Between Aflac Incorporated and Phoenix Group
Can any of the company-specific risk be diversified away by investing in both Aflac Incorporated and Phoenix Group 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 Incorporated and Phoenix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aflac Incorporated and Phoenix Group Holdings, you can compare the effects of market volatilities on Aflac Incorporated and Phoenix Group 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 Incorporated with a short position of Phoenix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aflac Incorporated and Phoenix Group.
Diversification Opportunities for Aflac Incorporated and Phoenix Group
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aflac and Phoenix is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aflac Incorporated and Phoenix Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Group Holdings and Aflac Incorporated 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 Incorporated are associated (or correlated) with Phoenix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Group Holdings has no effect on the direction of Aflac Incorporated i.e., Aflac Incorporated and Phoenix Group go up and down completely randomly.
Pair Corralation between Aflac Incorporated and Phoenix Group
Assuming the 90 days horizon Aflac Incorporated is expected to generate 0.5 times more return on investment than Phoenix Group. However, Aflac Incorporated is 2.01 times less risky than Phoenix Group. It trades about 0.13 of its potential returns per unit of risk. Phoenix Group Holdings is currently generating about -0.04 per unit of risk. If you would invest 9,950 in Aflac Incorporated on October 25, 2024 and sell it today you would earn a total of 235.00 from holding Aflac Incorporated or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Aflac Incorporated vs. Phoenix Group Holdings
Performance |
| Timeline |
| Aflac Incorporated |
| Phoenix Group Holdings |
Aflac Incorporated and Phoenix Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aflac Incorporated and Phoenix Group
The main advantage of trading using opposite Aflac Incorporated and Phoenix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aflac Incorporated position performs unexpectedly, Phoenix Group 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 Phoenix Group will offset losses from the drop in Phoenix Group's long position.| Aflac Incorporated vs. The Yokohama Rubber | Aflac Incorporated vs. Tower One Wireless | Aflac Incorporated vs. GOODYEAR T RUBBER | Aflac Incorporated vs. VULCAN MATERIALS |
| Phoenix Group vs. SIERRA METALS | Phoenix Group vs. Forsys Metals Corp | Phoenix Group vs. Osisko Metals | Phoenix Group vs. Air Transport Services |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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