Correlation Between FG Annuities and Primerica
Can any of the company-specific risk be diversified away by investing in both FG Annuities 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 FG Annuities and Primerica 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 Primerica, you can compare the effects of market volatilities on FG Annuities 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 FG Annuities with a short position of Primerica. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Annuities and Primerica.
Diversification Opportunities for FG Annuities and Primerica
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FG Annuities and Primerica is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding FG Annuities Life and Primerica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primerica 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 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 FG Annuities i.e., FG Annuities and Primerica go up and down completely randomly.
Pair Corralation between FG Annuities and Primerica
Allowing for the 90-day total investment horizon FG Annuities Life is expected to generate 1.77 times more return on investment than Primerica. However, FG Annuities is 1.77 times more volatile than Primerica. It trades about 0.04 of its potential returns per unit of risk. Primerica is currently generating about -0.08 per unit of risk. If you would invest 4,513 in FG Annuities Life on November 18, 2024 and sell it today you would earn a total of 191.00 from holding FG Annuities Life or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FG Annuities Life vs. Primerica
Performance |
| Timeline |
| FG Annuities Life |
| Primerica |
FG Annuities and Primerica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Annuities and Primerica
The main advantage of trading using opposite FG Annuities and Primerica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Annuities 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.| FG Annuities vs. Lincoln National | FG Annuities vs. Aflac Incorporated | FG Annuities vs. Unum Group | FG Annuities vs. Manulife Financial Corp |
| Primerica vs. CNO Financial Group | Primerica vs. Aflac Incorporated | Primerica vs. Prudential PLC ADR | 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |