Correlation Between Horace Mann and Loews Corp
Can any of the company-specific risk be diversified away by investing in both Horace Mann and Loews Corp 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 Horace Mann and Loews Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horace Mann Educators and Loews Corp, you can compare the effects of market volatilities on Horace Mann and Loews Corp 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 Horace Mann with a short position of Loews Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horace Mann and Loews Corp.
Diversification Opportunities for Horace Mann and Loews Corp
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Horace and Loews is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Horace Mann Educators and Loews Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loews Corp and Horace Mann 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 Horace Mann Educators are associated (or correlated) with Loews Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews Corp has no effect on the direction of Horace Mann i.e., Horace Mann and Loews Corp go up and down completely randomly.
Pair Corralation between Horace Mann and Loews Corp
Considering the 90-day investment horizon Horace Mann Educators is expected to generate 1.78 times more return on investment than Loews Corp. However, Horace Mann is 1.78 times more volatile than Loews Corp. It trades about 0.2 of its potential returns per unit of risk. Loews Corp is currently generating about -0.17 per unit of risk. If you would invest 3,817 in Horace Mann Educators on November 18, 2024 and sell it today you would earn a total of 297.00 from holding Horace Mann Educators or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horace Mann Educators vs. Loews Corp
Performance |
| Timeline |
| Horace Mann Educators |
| Loews Corp |
Horace Mann and Loews Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horace Mann and Loews Corp
The main advantage of trading using opposite Horace Mann and Loews Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horace Mann position performs unexpectedly, Loews Corp 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 Loews Corp will offset losses from the drop in Loews Corp's long position.| Horace Mann vs. Kemper | Horace Mann vs. RLI Corp | Horace Mann vs. Global Indemnity PLC | Horace Mann vs. Argo Group International |
| Loews Corp vs. Horace Mann Educators | Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |