Correlation Between FG Annuities and Unum
Can any of the company-specific risk be diversified away by investing in both FG Annuities and Unum 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 Unum 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 Unum Group, you can compare the effects of market volatilities on FG Annuities and Unum 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 Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Annuities and Unum.
Diversification Opportunities for FG Annuities and Unum
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FG Annuities and Unum is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding FG Annuities Life and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group 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 Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of FG Annuities i.e., FG Annuities and Unum go up and down completely randomly.
Pair Corralation between FG Annuities and Unum
Allowing for the 90-day total investment horizon FG Annuities Life is expected to generate 1.72 times more return on investment than Unum. However, FG Annuities is 1.72 times more volatile than Unum Group. It trades about 0.08 of its potential returns per unit of risk. Unum Group is currently generating about 0.09 per unit of risk. If you would invest 1,842 in FG Annuities Life on August 24, 2024 and sell it today you would earn a total of 2,988 from holding FG Annuities Life or generate 162.21% 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. Unum Group
Performance |
| Timeline |
| FG Annuities Life |
| Unum Group |
FG Annuities and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Annuities and Unum
The main advantage of trading using opposite FG Annuities and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Annuities position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| FG Annuities vs. Manulife Financial Corp | FG Annuities vs. Brighthouse Financial | FG Annuities vs. Jackson Financial |
| Unum vs. Manulife Financial Corp | Unum vs. Brighthouse Financial | Unum vs. FG Annuities Life | Unum vs. Jackson 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |