Correlation Between CNO Financial and Primerica
Can any of the company-specific risk be diversified away by investing in both CNO Financial and Primerica 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 Primerica 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 Primerica, you can compare the effects of market volatilities on CNO Financial and Primerica 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 Primerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNO Financial and Primerica.
Diversification Opportunities for CNO Financial and Primerica
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CNO and Primerica is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CNO Financial Group and Primerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primerica 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 Primerica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primerica has no effect on the direction of CNO Financial i.e., CNO Financial and Primerica go up and down completely randomly.
Pair Corralation between CNO Financial and Primerica
Considering the 90-day investment horizon CNO Financial Group is expected to generate 1.25 times more return on investment than Primerica. However, CNO Financial is 1.25 times more volatile than Primerica. It trades about 0.11 of its potential returns per unit of risk. Primerica is currently generating about 0.11 per unit of risk. If you would invest 2,063 in CNO Financial Group on August 27, 2024 and sell it today you would earn a total of 1,928 from holding CNO Financial Group or generate 93.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNO Financial Group vs. Primerica
Performance |
| Timeline |
| CNO Financial Group |
| Primerica |
CNO Financial and Primerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNO Financial and Primerica
The main advantage of trading using opposite CNO Financial and Primerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNO Financial position performs unexpectedly, Primerica 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 Primerica will offset losses from the drop in Primerica's long position.| CNO Financial vs. Morningstar Unconstrained Allocation | CNO Financial vs. Via Renewables | CNO Financial vs. Sitka Gold Corp | CNO Financial vs. MSCI ACWI exAUCONSUMER |
| Primerica vs. CNO Financial Group | Primerica vs. Aflac Incorporated | Primerica vs. Prudential Public Limited | Primerica vs. FG Annuities Life |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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