Correlation Between Pekin Life and Open House
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Open House 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 Open House 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 Open House Group, you can compare the effects of market volatilities on Pekin Life and Open House 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 Open House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Open House.
Diversification Opportunities for Pekin Life and Open House
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pekin and Open is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Open House Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Open House Group 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 Open House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Open House Group has no effect on the direction of Pekin Life i.e., Pekin Life and Open House go up and down completely randomly.
Pair Corralation between Pekin Life and Open House
If you would invest 1,152 in Pekin Life Insurance on September 13, 2024 and sell it today you would earn a total of 23.00 from holding Pekin Life Insurance or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Pekin Life Insurance vs. Open House Group
Performance |
| Timeline |
| Pekin Life Insurance |
| Open House Group |
Pekin Life and Open House Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Open House
The main advantage of trading using opposite Pekin Life and Open House positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Open House 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 Open House will offset losses from the drop in Open House'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 |
| Open House vs. Legacy Education | Open House vs. Apple Inc | Open House vs. NVIDIA | Open House vs. Microsoft |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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