Correlation Between Brighthouse Financial and Midwest Holding
Can any of the company-specific risk be diversified away by investing in both Brighthouse Financial and Midwest Holding 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 Brighthouse Financial and Midwest Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brighthouse Financial and Midwest Holding, you can compare the effects of market volatilities on Brighthouse Financial and Midwest Holding 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 Brighthouse Financial with a short position of Midwest Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brighthouse Financial and Midwest Holding.
Diversification Opportunities for Brighthouse Financial and Midwest Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brighthouse and Midwest is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Brighthouse Financial and Midwest Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midwest Holding and Brighthouse Financial 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 Brighthouse Financial are associated (or correlated) with Midwest Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midwest Holding has no effect on the direction of Brighthouse Financial i.e., Brighthouse Financial and Midwest Holding go up and down completely randomly.
Pair Corralation between Brighthouse Financial and Midwest Holding
If you would invest 2,651 in Midwest Holding on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Midwest Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Brighthouse Financial vs. Midwest Holding
Performance |
| Timeline |
| Brighthouse Financial |
| Midwest Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brighthouse Financial and Midwest Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brighthouse Financial and Midwest Holding
The main advantage of trading using opposite Brighthouse Financial and Midwest Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brighthouse Financial position performs unexpectedly, Midwest Holding 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 Midwest Holding will offset losses from the drop in Midwest Holding's long position.| Brighthouse Financial vs. Brighthouse Financial | Brighthouse Financial vs. Brighthouse Financial | Brighthouse Financial vs. Fifth Third Bancorp | Brighthouse Financial vs. First Citizens BancShares |
| Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. FG Annuities Life | Midwest Holding vs. CNO Financial Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets |