Correlation Between PGE Corp and ALLSTATE
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By analyzing existing cross correlation between PGE Corp and ALLSTATE P 555, you can compare the effects of market volatilities on PGE Corp and ALLSTATE 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 PGE Corp with a short position of ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGE Corp and ALLSTATE.
Diversification Opportunities for PGE Corp and ALLSTATE
Very good diversification
The 3 months correlation between PGE and ALLSTATE is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PGE Corp and ALLSTATE P 555 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 555 and PGE Corp 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 PGE Corp are associated (or correlated) with ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 555 has no effect on the direction of PGE Corp i.e., PGE Corp and ALLSTATE go up and down completely randomly.
Pair Corralation between PGE Corp and ALLSTATE
Considering the 90-day investment horizon PGE Corp is expected to generate 0.82 times more return on investment than ALLSTATE. However, PGE Corp is 1.23 times less risky than ALLSTATE. It trades about 0.17 of its potential returns per unit of risk. ALLSTATE P 555 is currently generating about 0.02 per unit of risk. If you would invest 2,051 in PGE Corp on August 27, 2024 and sell it today you would earn a total of 68.00 from holding PGE Corp or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PGE Corp vs. ALLSTATE P 555
Performance |
| Timeline |
| PGE Corp |
| ALLSTATE P 555 |
PGE Corp and ALLSTATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGE Corp and ALLSTATE
The main advantage of trading using opposite PGE Corp and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGE Corp position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE's long position.| PGE Corp vs. Consolidated Edison | PGE Corp vs. Southern Company | PGE Corp vs. Entergy | PGE Corp vs. Pinnacle West Capital |
| ALLSTATE vs. Constellation Brands Class | ALLSTATE vs. PGE Corp | ALLSTATE vs. Kenon Holdings | ALLSTATE vs. WEC Energy 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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