Correlation Between FG Annuities and B Riley
Can any of the company-specific risk be diversified away by investing in both FG Annuities and B Riley 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 B Riley 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 B Riley Financial, you can compare the effects of market volatilities on FG Annuities and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Annuities and B Riley.
Diversification Opportunities for FG Annuities and B Riley
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FG Annuities and RILYP is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding FG Annuities Life and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of FG Annuities i.e., FG Annuities and B Riley go up and down completely randomly.
Pair Corralation between FG Annuities and B Riley
Allowing for the 90-day total investment horizon FG Annuities Life is expected to generate 1.08 times more return on investment than B Riley. However, FG Annuities is 1.08 times more volatile than B Riley Financial. It trades about 0.19 of its potential returns per unit of risk. B Riley Financial is currently generating about -0.17 per unit of risk. If you would invest 4,166 in FG Annuities Life on August 28, 2024 and sell it today you would earn a total of 677.00 from holding FG Annuities Life or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FG Annuities Life vs. B Riley Financial
Performance |
| Timeline |
| FG Annuities Life |
| B Riley Financial |
FG Annuities and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Annuities and B Riley
The main advantage of trading using opposite FG Annuities and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Annuities position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley'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 |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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