Correlation Between Mutual Of and SCOR PK
Can any of the company-specific risk be diversified away by investing in both Mutual Of and SCOR PK 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 Mutual Of and SCOR PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and SCOR PK, you can compare the effects of market volatilities on Mutual Of and SCOR PK 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 Mutual Of with a short position of SCOR PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and SCOR PK.
Diversification Opportunities for Mutual Of and SCOR PK
Good diversification
The 3 months correlation between Mutual and SCOR is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and SCOR PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR PK and Mutual Of 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 Mutual Of America are associated (or correlated) with SCOR PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR PK has no effect on the direction of Mutual Of i.e., Mutual Of and SCOR PK go up and down completely randomly.
Pair Corralation between Mutual Of and SCOR PK
Assuming the 90 days horizon Mutual Of America is expected to generate 0.16 times more return on investment than SCOR PK. However, Mutual Of America is 6.37 times less risky than SCOR PK. It trades about 0.07 of its potential returns per unit of risk. SCOR PK is currently generating about -0.01 per unit of risk. If you would invest 1,345 in Mutual Of America on August 24, 2024 and sell it today you would earn a total of 59.00 from holding Mutual Of America or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. SCOR PK
Performance |
| Timeline |
| Mutual Of America |
| SCOR PK |
Mutual Of and SCOR PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and SCOR PK
The main advantage of trading using opposite Mutual Of and SCOR PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, SCOR PK 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 SCOR PK will offset losses from the drop in SCOR PK's long position.| Mutual Of vs. Vanguard Target Retirement | Mutual Of vs. ABIVAX Socit Anonyme | Mutual Of vs. SCOR PK | Mutual Of vs. HUMANA INC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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