Correlation Between National Western and Unum
Can any of the company-specific risk be diversified away by investing in both National Western and Unum 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 National Western and Unum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Western Life and Unum Group, you can compare the effects of market volatilities on National Western and Unum 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 National Western with a short position of Unum. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Western and Unum.
Diversification Opportunities for National Western and Unum
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and Unum is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding National Western Life and Unum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unum Group and National Western 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 National Western Life are associated (or correlated) with Unum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unum Group has no effect on the direction of National Western i.e., National Western and Unum go up and down completely randomly.
Pair Corralation between National Western and Unum
If you would invest 7,252 in Unum Group on November 3, 2024 and sell it today you would earn a total of 373.00 from holding Unum Group or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
National Western Life vs. Unum Group
Performance |
| Timeline |
| National Western Life |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Unum Group |
National Western and Unum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Western and Unum
The main advantage of trading using opposite National Western and Unum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Western position performs unexpectedly, Unum 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 Unum will offset losses from the drop in Unum's long position.| National Western vs. MetLife Preferred Stock | National Western vs. Prudential PLC ADR | National Western vs. CNO Financial Group | National Western vs. FG Annuities Life |
| Unum vs. Prudential Financial | Unum vs. MetLife | Unum vs. Jackson Financial | Unum 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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