Correlation Between Midwest Holding and Aflac Incorporated
Can any of the company-specific risk be diversified away by investing in both Midwest Holding and Aflac Incorporated 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 Midwest Holding and Aflac Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midwest Holding and Aflac Incorporated, you can compare the effects of market volatilities on Midwest Holding and Aflac Incorporated 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 Midwest Holding with a short position of Aflac Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midwest Holding and Aflac Incorporated.
Diversification Opportunities for Midwest Holding and Aflac Incorporated
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Midwest and Aflac is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Midwest Holding and Aflac Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aflac Incorporated and Midwest Holding 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 Midwest Holding are associated (or correlated) with Aflac Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aflac Incorporated has no effect on the direction of Midwest Holding i.e., Midwest Holding and Aflac Incorporated go up and down completely randomly.
Pair Corralation between Midwest Holding and Aflac Incorporated
If you would invest 10,951 in Aflac Incorporated on August 30, 2024 and sell it today you would earn a total of 459.00 from holding Aflac Incorporated or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Midwest Holding vs. Aflac Incorporated
Performance |
| Timeline |
| Midwest Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aflac Incorporated |
Midwest Holding and Aflac Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midwest Holding and Aflac Incorporated
The main advantage of trading using opposite Midwest Holding and Aflac Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midwest Holding position performs unexpectedly, Aflac Incorporated 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 Aflac Incorporated will offset losses from the drop in Aflac Incorporated's long position.| Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. Brighthouse Financial | Midwest Holding vs. FG Annuities Life | Midwest Holding vs. CNO Financial Group |
| Aflac Incorporated vs. Prudential Financial | Aflac Incorporated vs. Lincoln National | Aflac Incorporated vs. Brighthouse Financial | Aflac Incorporated vs. Unum Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |