Correlation Between American National and Aviva PLC
Can any of the company-specific risk be diversified away by investing in both American National and Aviva PLC 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 National and Aviva PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American National Group and Aviva PLC ADR, you can compare the effects of market volatilities on American National and Aviva PLC 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 National with a short position of Aviva PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of American National and Aviva PLC.
Diversification Opportunities for American National and Aviva PLC
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Aviva is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding American National Group and Aviva PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aviva PLC ADR and American National 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 National Group are associated (or correlated) with Aviva PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aviva PLC ADR has no effect on the direction of American National i.e., American National and Aviva PLC go up and down completely randomly.
Pair Corralation between American National and Aviva PLC
If you would invest 2,464 in American National Group on August 30, 2024 and sell it today you would earn a total of 37.00 from holding American National Group or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
American National Group vs. Aviva PLC ADR
Performance |
| Timeline |
| American National |
| Aviva PLC ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American National and Aviva PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American National and Aviva PLC
The main advantage of trading using opposite American National and Aviva PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American National position performs unexpectedly, Aviva PLC 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 Aviva PLC will offset losses from the drop in Aviva PLC's long position.| American National vs. FG Annuities Life | American National vs. Globe Life | American National vs. MetLife Preferred Stock | American National vs. MetLife Preferred Stock |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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