Correlation Between FG Annuities and Equitable Financial
Can any of the company-specific risk be diversified away by investing in both FG Annuities and Equitable Financial 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 FG Annuities and Equitable Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Annuities Life and Equitable Financial Corp, you can compare the effects of market volatilities on FG Annuities and Equitable Financial 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 FG Annuities with a short position of Equitable Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Annuities and Equitable Financial.
Diversification Opportunities for FG Annuities and Equitable Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FG Annuities and Equitable is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding FG Annuities Life and Equitable Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Financial Corp and FG Annuities 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 FG Annuities Life are associated (or correlated) with Equitable Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Financial Corp has no effect on the direction of FG Annuities i.e., FG Annuities and Equitable Financial go up and down completely randomly.
Pair Corralation between FG Annuities and Equitable Financial
If you would invest 4,037 in FG Annuities Life on September 2, 2024 and sell it today you would earn a total of 796.00 from holding FG Annuities Life or generate 19.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
FG Annuities Life vs. Equitable Financial Corp
Performance |
| Timeline |
| FG Annuities Life |
| Equitable Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FG Annuities and Equitable Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Annuities and Equitable Financial
The main advantage of trading using opposite FG Annuities and Equitable Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Annuities position performs unexpectedly, Equitable Financial 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 Equitable Financial will offset losses from the drop in Equitable Financial's long position.| FG Annuities vs. CNO Financial Group | FG Annuities vs. MetLife Preferred Stock | FG Annuities vs. Prudential Public Limited | FG Annuities vs. Brighthouse Financial |
| Equitable Financial vs. CoastalSouth Bancshares | Equitable Financial vs. Bank of San | Equitable Financial vs. Citizens Bancorp of | Equitable Financial vs. Mountain Commerce Bancorp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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