Correlation Between CNO Financial and American National
Can any of the company-specific risk be diversified away by investing in both CNO Financial and American National 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 CNO Financial and American National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNO Financial Group and American National Group, you can compare the effects of market volatilities on CNO Financial and American National 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 CNO Financial with a short position of American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNO Financial and American National.
Diversification Opportunities for CNO Financial and American National
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNO and American is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CNO Financial Group and American National Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American National and CNO 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 CNO Financial Group are associated (or correlated) with American National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American National has no effect on the direction of CNO Financial i.e., CNO Financial and American National go up and down completely randomly.
Pair Corralation between CNO Financial and American National
Considering the 90-day investment horizon CNO Financial Group is expected to generate 2.07 times more return on investment than American National. However, CNO Financial is 2.07 times more volatile than American National Group. It trades about 0.1 of its potential returns per unit of risk. American National Group is currently generating about 0.05 per unit of risk. If you would invest 2,277 in CNO Financial Group on August 31, 2024 and sell it today you would earn a total of 1,713 from holding CNO Financial Group or generate 75.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
CNO Financial Group vs. American National Group
Performance |
| Timeline |
| CNO Financial Group |
| American National |
CNO Financial and American National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNO Financial and American National
The main advantage of trading using opposite CNO Financial and American National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNO Financial position performs unexpectedly, American National 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 American National will offset losses from the drop in American National's long position.| CNO Financial vs. MetLife Preferred Stock | CNO Financial vs. FG Annuities Life | CNO Financial vs. Prudential Public Limited | CNO Financial vs. MetLife Preferred Stock |
| American National vs. FG Annuities Life | American National vs. Globe Life | American National vs. MetLife Preferred Stock | American National vs. MetLife Preferred Stock |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |