Correlation Between Midwest Holding and Vericity
Can any of the company-specific risk be diversified away by investing in both Midwest Holding and Vericity 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 Vericity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midwest Holding and Vericity, you can compare the effects of market volatilities on Midwest Holding and Vericity 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 Vericity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midwest Holding and Vericity.
Diversification Opportunities for Midwest Holding and Vericity
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Midwest and Vericity is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Midwest Holding and Vericity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vericity 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 Vericity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vericity has no effect on the direction of Midwest Holding i.e., Midwest Holding and Vericity go up and down completely randomly.
Pair Corralation between Midwest Holding and Vericity
If you would invest 1,143 in Vericity on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Vericity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Midwest Holding vs. Vericity
Performance |
| Timeline |
| Midwest Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Vericity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Midwest Holding and Vericity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midwest Holding and Vericity
The main advantage of trading using opposite Midwest Holding and Vericity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midwest Holding position performs unexpectedly, Vericity 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 Vericity will offset losses from the drop in Vericity'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 |
| Vericity vs. CNO Financial Group | Vericity vs. Brighthouse Financial | Vericity vs. FG Annuities Life | Vericity vs. Prudential PLC ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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