Correlation Between Pekin Life and Peoples Insurance
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Peoples Insurance 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 Peoples Insurance 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 The Peoples Insurance, you can compare the effects of market volatilities on Pekin Life and Peoples Insurance 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 Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Peoples Insurance.
Diversification Opportunities for Pekin Life and Peoples Insurance
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pekin and Peoples is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and The Peoples Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance 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 Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Pekin Life i.e., Pekin Life and Peoples Insurance go up and down completely randomly.
Pair Corralation between Pekin Life and Peoples Insurance
If you would invest 1,175 in Pekin Life Insurance on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Pekin Life Insurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Pekin Life Insurance vs. The Peoples Insurance
Performance |
| Timeline |
| Pekin Life Insurance |
| Peoples Insurance |
Pekin Life and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Peoples Insurance
The main advantage of trading using opposite Pekin Life and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Peoples Insurance 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 Peoples Insurance will offset losses from the drop in Peoples Insurance'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 |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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