Correlation Between Centaur Media and AFLAC
Can any of the company-specific risk be diversified away by investing in both Centaur Media and AFLAC 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 Centaur Media and AFLAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and AFLAC Inc, you can compare the effects of market volatilities on Centaur Media and AFLAC 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 Centaur Media with a short position of AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and AFLAC.
Diversification Opportunities for Centaur Media and AFLAC
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Centaur and AFLAC is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and AFLAC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC Inc and Centaur Media 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 Centaur Media are associated (or correlated) with AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC Inc has no effect on the direction of Centaur Media i.e., Centaur Media and AFLAC go up and down completely randomly.
Pair Corralation between Centaur Media and AFLAC
Assuming the 90 days trading horizon Centaur Media is expected to generate 1.31 times more return on investment than AFLAC. However, Centaur Media is 1.31 times more volatile than AFLAC Inc. It trades about -0.11 of its potential returns per unit of risk. AFLAC Inc is currently generating about -0.15 per unit of risk. If you would invest 2,450 in Centaur Media on September 14, 2024 and sell it today you would lose (110.00) from holding Centaur Media or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. AFLAC Inc
Performance |
| Timeline |
| Centaur Media |
| AFLAC Inc |
Centaur Media and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and AFLAC
The main advantage of trading using opposite Centaur Media and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC's long position.| Centaur Media vs. Quantum Blockchain Technologies | Centaur Media vs. Versarien PLC | Centaur Media vs. Argo Group Limited | Centaur Media vs. Tungsten West PLC |
| AFLAC vs. Liberty Media Corp | AFLAC vs. Check Point Software | AFLAC vs. MediaZest plc | AFLAC vs. Centaur Media |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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