Correlation Between CNO Financial and Kansas City
Can any of the company-specific risk be diversified away by investing in both CNO Financial and Kansas City 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 Kansas City 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 Kansas City Life, you can compare the effects of market volatilities on CNO Financial and Kansas City 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 Kansas City. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNO Financial and Kansas City.
Diversification Opportunities for CNO Financial and Kansas City
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CNO and Kansas is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CNO Financial Group and Kansas City Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kansas City Life 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 Kansas City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kansas City Life has no effect on the direction of CNO Financial i.e., CNO Financial and Kansas City go up and down completely randomly.
Pair Corralation between CNO Financial and Kansas City
If you would invest 2,181 in CNO Financial Group on August 27, 2024 and sell it today you would earn a total of 1,810 from holding CNO Financial Group or generate 82.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
CNO Financial Group vs. Kansas City Life
Performance |
| Timeline |
| CNO Financial Group |
| Kansas City Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CNO Financial and Kansas City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNO Financial and Kansas City
The main advantage of trading using opposite CNO Financial and Kansas City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNO Financial position performs unexpectedly, Kansas City 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 Kansas City will offset losses from the drop in Kansas City'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 |
| Kansas City vs. CNO Financial Group | Kansas City vs. FG Annuities Life | Kansas City vs. Prudential Public Limited | Kansas City vs. Lincoln National |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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