Correlation Between Allstate and Allstate
Can any of the company-specific risk be diversified away by investing in both Allstate and Allstate 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 Allstate and Allstate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Allstate and The Allstate, you can compare the effects of market volatilities on Allstate and Allstate 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 Allstate with a short position of Allstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstate and Allstate.
Diversification Opportunities for Allstate and Allstate
Poor diversification
The 3 months correlation between Allstate and Allstate is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Allstate and The Allstate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allstate and Allstate 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 The Allstate are associated (or correlated) with Allstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allstate has no effect on the direction of Allstate i.e., Allstate and Allstate go up and down completely randomly.
Pair Corralation between Allstate and Allstate
Assuming the 90 days trading horizon The Allstate is expected to generate 1.01 times more return on investment than Allstate. However, Allstate is 1.01 times more volatile than The Allstate. It trades about 0.03 of its potential returns per unit of risk. The Allstate is currently generating about -0.02 per unit of risk. If you would invest 2,229 in The Allstate on November 1, 2024 and sell it today you would earn a total of 45.00 from holding The Allstate or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Allstate vs. The Allstate
Performance |
| Timeline |
| Allstate |
| Allstate |
Allstate and Allstate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstate and Allstate
The main advantage of trading using opposite Allstate and Allstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstate position performs unexpectedly, Allstate 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 Allstate will offset losses from the drop in Allstate's long position.| Allstate vs. The Allstate | Allstate vs. Aspen Insurance Holdings | Allstate vs. AmTrust Financial Services | Allstate vs. Argo Group International |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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