Correlation Between Pekin Life and Atlas Air
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Atlas Air 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 Pekin Life and Atlas Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and Atlas Air Worldwide, you can compare the effects of market volatilities on Pekin Life and Atlas Air 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 Pekin Life with a short position of Atlas Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Atlas Air.
Diversification Opportunities for Pekin Life and Atlas Air
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pekin and Atlas is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Atlas Air Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Air Worldwide and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with Atlas Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Air Worldwide has no effect on the direction of Pekin Life i.e., Pekin Life and Atlas Air go up and down completely randomly.
Pair Corralation between Pekin Life and Atlas Air
If you would invest 1,153 in Pekin Life Insurance on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Pekin Life Insurance or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Pekin Life Insurance vs. Atlas Air Worldwide
Performance |
| Timeline |
| Pekin Life Insurance |
| Atlas Air Worldwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pekin Life and Atlas Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Atlas Air
The main advantage of trading using opposite Pekin Life and Atlas Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Atlas Air 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 Atlas Air will offset losses from the drop in Atlas Air's long position.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
| Atlas Air vs. Pekin Life Insurance | Atlas Air vs. Aegon NV ADR | Atlas Air vs. Coty Inc | Atlas Air vs. Weyco 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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