Correlation Between FG Annuities and Greenlight Capital
Can any of the company-specific risk be diversified away by investing in both FG Annuities and Greenlight Capital 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 Greenlight Capital 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 Greenlight Capital Re, you can compare the effects of market volatilities on FG Annuities and Greenlight Capital 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 Greenlight Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Annuities and Greenlight Capital.
Diversification Opportunities for FG Annuities and Greenlight Capital
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FG Annuities and Greenlight is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding FG Annuities Life and Greenlight Capital Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Capital 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 Greenlight Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Capital has no effect on the direction of FG Annuities i.e., FG Annuities and Greenlight Capital go up and down completely randomly.
Pair Corralation between FG Annuities and Greenlight Capital
Allowing for the 90-day total investment horizon FG Annuities Life is expected to generate 1.69 times more return on investment than Greenlight Capital. However, FG Annuities is 1.69 times more volatile than Greenlight Capital Re. It trades about 0.19 of its potential returns per unit of risk. Greenlight Capital Re is currently generating about 0.25 per unit of risk. If you would invest 4,166 in FG Annuities Life on August 27, 2024 and sell it today you would earn a total of 664.00 from holding FG Annuities Life or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FG Annuities Life vs. Greenlight Capital Re
Performance |
| Timeline |
| FG Annuities Life |
| Greenlight Capital |
FG Annuities and Greenlight Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Annuities and Greenlight Capital
The main advantage of trading using opposite FG Annuities and Greenlight Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Annuities position performs unexpectedly, Greenlight Capital 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 Greenlight Capital will offset losses from the drop in Greenlight Capital's long position.| FG Annuities vs. Morningstar Unconstrained Allocation | FG Annuities vs. Via Renewables | FG Annuities vs. Sitka Gold Corp | FG Annuities vs. MSCI ACWI exAUCONSUMER |
| Greenlight Capital vs. Reinsurance Group of | Greenlight Capital vs. Siriuspoint | Greenlight Capital vs. SCOR PK | Greenlight Capital vs. SiriusPoint |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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