Correlation Between Globe Life and UTG
Can any of the company-specific risk be diversified away by investing in both Globe Life and UTG 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 Globe Life and UTG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Life 425 and UTG Inc, you can compare the effects of market volatilities on Globe Life and UTG 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 Globe Life with a short position of UTG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Life and UTG.
Diversification Opportunities for Globe Life and UTG
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globe and UTG is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Globe Life 425 and UTG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTG Inc and Globe Life 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 Globe Life 425 are associated (or correlated) with UTG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTG Inc has no effect on the direction of Globe Life i.e., Globe Life and UTG go up and down completely randomly.
Pair Corralation between Globe Life and UTG
If you would invest 1,735 in Globe Life 425 on September 12, 2024 and sell it today you would lose (42.00) from holding Globe Life 425 or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Globe Life 425 vs. UTG Inc
Performance |
| Timeline |
| Globe Life 425 |
| UTG Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Globe Life and UTG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Life and UTG
The main advantage of trading using opposite Globe Life and UTG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Life position performs unexpectedly, UTG 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 UTG will offset losses from the drop in UTG's long position.| Globe Life vs. Brighthouse Financial | Globe Life vs. Brighthouse Financial | Globe Life vs. MetLife Preferred Stock | Globe Life vs. Brighthouse 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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