Correlation Between Genworth Financial and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Genworth Financial and FG Annuities 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 Genworth Financial and FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genworth Financial and FG Annuities Life, you can compare the effects of market volatilities on Genworth Financial and FG Annuities 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 Genworth Financial with a short position of FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genworth Financial and FG Annuities.
Diversification Opportunities for Genworth Financial and FG Annuities
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Genworth and FG Annuities is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life and Genworth Financial 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 Genworth Financial are associated (or correlated) with FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of Genworth Financial i.e., Genworth Financial and FG Annuities go up and down completely randomly.
Pair Corralation between Genworth Financial and FG Annuities
Considering the 90-day investment horizon Genworth Financial is expected to generate 1.19 times less return on investment than FG Annuities. But when comparing it to its historical volatility, Genworth Financial is 1.81 times less risky than FG Annuities. It trades about 0.28 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 4,184 in FG Annuities Life on August 30, 2024 and sell it today you would earn a total of 668.00 from holding FG Annuities Life or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genworth Financial vs. FG Annuities Life
Performance |
| Timeline |
| Genworth Financial |
| FG Annuities Life |
Genworth Financial and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genworth Financial and FG Annuities
The main advantage of trading using opposite Genworth Financial and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| Genworth Financial vs. MetLife Preferred Stock | Genworth Financial vs. Prudential Public Limited | Genworth Financial vs. Primerica | Genworth Financial vs. CNO Financial Group |
| FG Annuities vs. CNO Financial Group | FG Annuities vs. MetLife Preferred Stock | FG Annuities vs. Prudential Public Limited | FG Annuities 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |