Correlation Between Lincoln National and National Western
Can any of the company-specific risk be diversified away by investing in both Lincoln National and National Western 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 Lincoln National and National Western into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lincoln National and National Western Life, you can compare the effects of market volatilities on Lincoln National and National Western 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 Lincoln National with a short position of National Western. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lincoln National and National Western.
Diversification Opportunities for Lincoln National and National Western
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lincoln and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lincoln National and National Western Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Western Life and Lincoln National 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 Lincoln National are associated (or correlated) with National Western. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Western Life has no effect on the direction of Lincoln National i.e., Lincoln National and National Western go up and down completely randomly.
Pair Corralation between Lincoln National and National Western
If you would invest 3,253 in Lincoln National on October 22, 2024 and sell it today you would earn a total of 60.00 from holding Lincoln National or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.64% |
| Values | Daily Returns |
Lincoln National vs. National Western Life
Performance |
| Timeline |
| Lincoln National |
| National Western Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lincoln National and National Western Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lincoln National and National Western
The main advantage of trading using opposite Lincoln National and National Western positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lincoln National position performs unexpectedly, National Western 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 National Western will offset losses from the drop in National Western's long position.| Lincoln National vs. MetLife | Lincoln National vs. Aflac Incorporated | Lincoln National vs. Unum Group | Lincoln National vs. Manulife Financial Corp |
| National Western vs. MetLife Preferred Stock | National Western vs. Prudential PLC ADR | National Western vs. CNO Financial Group | National Western vs. FG Annuities Life |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |