Correlation Between Allstate Corp and WICKES GROUP
Can any of the company-specific risk be diversified away by investing in both Allstate Corp and WICKES 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 Allstate Corp and WICKES GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allstate Corp and WICKES GROUP PLC, you can compare the effects of market volatilities on Allstate Corp and WICKES 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 Allstate Corp with a short position of WICKES GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstate Corp and WICKES GROUP.
Diversification Opportunities for Allstate Corp and WICKES GROUP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allstate and WICKES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allstate Corp and WICKES GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WICKES GROUP PLC and Allstate Corp 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 Allstate Corp are associated (or correlated) with WICKES GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WICKES GROUP PLC has no effect on the direction of Allstate Corp i.e., Allstate Corp and WICKES GROUP go up and down completely randomly.
Pair Corralation between Allstate Corp and WICKES GROUP
If you would invest 176.00 in WICKES GROUP PLC on October 19, 2024 and sell it today you would earn a total of 0.00 from holding WICKES GROUP PLC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.5% |
| Values | Daily Returns |
Allstate Corp vs. WICKES GROUP PLC
Performance |
| Timeline |
| Allstate Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| WICKES GROUP PLC |
Allstate Corp and WICKES GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstate Corp and WICKES GROUP
The main advantage of trading using opposite Allstate Corp and WICKES GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstate Corp position performs unexpectedly, WICKES 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 WICKES GROUP will offset losses from the drop in WICKES GROUP's long position.| Allstate Corp vs. Zurich Insurance Group | Allstate Corp vs. Japan Post Insurance | Allstate Corp vs. FAST RETAIL ADR | Allstate Corp vs. TRADEDOUBLER AB SK |
| WICKES GROUP vs. SERI INDUSTRIAL EO | WICKES GROUP vs. COFCO Joycome Foods | WICKES GROUP vs. MAGNUM MINING EXP | WICKES GROUP vs. MCEWEN MINING INC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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