Correlation Between Critical Solutions and Aflac Incorporated
Can any of the company-specific risk be diversified away by investing in both Critical Solutions and Aflac Incorporated 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 Critical Solutions and Aflac Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Critical Solutions and Aflac Incorporated, you can compare the effects of market volatilities on Critical Solutions and Aflac Incorporated 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 Critical Solutions with a short position of Aflac Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Critical Solutions and Aflac Incorporated.
Diversification Opportunities for Critical Solutions and Aflac Incorporated
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Critical and Aflac is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Critical Solutions and Aflac Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aflac Incorporated and Critical Solutions 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 Critical Solutions are associated (or correlated) with Aflac Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aflac Incorporated has no effect on the direction of Critical Solutions i.e., Critical Solutions and Aflac Incorporated go up and down completely randomly.
Pair Corralation between Critical Solutions and Aflac Incorporated
If you would invest 10,930 in Aflac Incorporated on August 28, 2024 and sell it today you would earn a total of 390.00 from holding Aflac Incorporated or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Critical Solutions vs. Aflac Incorporated
Performance |
| Timeline |
| Critical Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aflac Incorporated |
Critical Solutions and Aflac Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Critical Solutions and Aflac Incorporated
The main advantage of trading using opposite Critical Solutions and Aflac Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Critical Solutions position performs unexpectedly, Aflac Incorporated 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 Incorporated will offset losses from the drop in Aflac Incorporated's long position.| Critical Solutions vs. VizConnect | Critical Solutions vs. Blue Diamond Ventures | Critical Solutions vs. American Diversified Holdings | Critical Solutions vs. Sgd Holdings |
| Aflac Incorporated vs. Morningstar Unconstrained Allocation | Aflac Incorporated vs. Via Renewables | Aflac Incorporated vs. Sitka Gold Corp | Aflac Incorporated vs. MSCI ACWI exAUCONSUMER |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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