Correlation Between Aflac Incorporated and Unum
Can any of the company-specific risk be diversified away by investing in both Aflac Incorporated 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 Aflac Incorporated and Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aflac Incorporated and Unum Group, you can compare the effects of market volatilities on Aflac Incorporated 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 Aflac Incorporated with a short position of Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aflac Incorporated and Unum.
Diversification Opportunities for Aflac Incorporated and Unum
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aflac and Unum is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aflac Incorporated and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group 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 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 Aflac Incorporated i.e., Aflac Incorporated and Unum go up and down completely randomly.
Pair Corralation between Aflac Incorporated and Unum
Considering the 90-day investment horizon Aflac Incorporated is expected to generate 1.0 times less return on investment than Unum. In addition to that, Aflac Incorporated is 1.56 times more volatile than Unum Group. It trades about 0.2 of its total potential returns per unit of risk. Unum Group is currently generating about 0.31 per unit of volatility. If you would invest 7,252 in Unum Group on November 3, 2024 and sell it today you would earn a total of 373.00 from holding Unum Group or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aflac Incorporated vs. Unum Group
Performance |
| Timeline |
| Aflac Incorporated |
| Unum Group |
Aflac Incorporated and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aflac Incorporated and Unum
The main advantage of trading using opposite Aflac Incorporated and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aflac Incorporated 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.| Aflac Incorporated vs. Prudential Financial | Aflac Incorporated vs. Lincoln National | Aflac Incorporated vs. Brighthouse Financial | Aflac Incorporated vs. Unum Group |
| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum vs. Manulife Financial Corp |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |