Correlation Between Kansas City and Lincoln National
Can any of the company-specific risk be diversified away by investing in both Kansas City and Lincoln National 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 Kansas City and Lincoln National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kansas City Life and Lincoln National, you can compare the effects of market volatilities on Kansas City and Lincoln National 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 Kansas City with a short position of Lincoln National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kansas City and Lincoln National.
Diversification Opportunities for Kansas City and Lincoln National
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kansas and Lincoln is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Kansas City Life and Lincoln National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lincoln National and Kansas City 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 Kansas City Life are associated (or correlated) with Lincoln National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lincoln National has no effect on the direction of Kansas City i.e., Kansas City and Lincoln National go up and down completely randomly.
Pair Corralation between Kansas City and Lincoln National
If you would invest 3,188 in Lincoln National on September 3, 2024 and sell it today you would earn a total of 366.00 from holding Lincoln National or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Kansas City Life vs. Lincoln National
Performance |
| Timeline |
| Kansas City Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lincoln National |
Kansas City and Lincoln National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kansas City and Lincoln National
The main advantage of trading using opposite Kansas City and Lincoln National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kansas City position performs unexpectedly, Lincoln National 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 Lincoln National will offset losses from the drop in Lincoln National's long position.| Kansas City vs. CNO Financial Group | Kansas City vs. FG Annuities Life | Kansas City vs. Prudential Public Limited | Kansas City vs. Lincoln National |
| Lincoln National vs. MetLife | Lincoln National vs. Aflac Incorporated | Lincoln National vs. Unum Group | Lincoln National vs. Manulife Financial Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world |