Correlation Between Pekin Life and South Jersey
Can any of the company-specific risk be diversified away by investing in both Pekin Life and South Jersey 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 South Jersey 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 South Jersey Industries, you can compare the effects of market volatilities on Pekin Life and South Jersey 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 South Jersey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and South Jersey.
Diversification Opportunities for Pekin Life and South Jersey
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pekin and South is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and South Jersey Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Jersey Industries 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 South Jersey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Jersey Industries has no effect on the direction of Pekin Life i.e., Pekin Life and South Jersey go up and down completely randomly.
Pair Corralation between Pekin Life and South Jersey
If you would invest 1,153 in Pekin Life Insurance on September 14, 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 | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Pekin Life Insurance vs. South Jersey Industries
Performance |
| Timeline |
| Pekin Life Insurance |
| South Jersey Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pekin Life and South Jersey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and South Jersey
The main advantage of trading using opposite Pekin Life and South Jersey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, South Jersey 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 South Jersey will offset losses from the drop in South Jersey's long position.| Pekin Life vs. Freedom Bank of | Pekin Life vs. HUMANA INC | Pekin Life vs. Barloworld Ltd ADR | Pekin Life vs. Morningstar Unconstrained Allocation |
| South Jersey vs. Nok Airlines Public | South Jersey vs. Enlight Renewable Energy | South Jersey vs. Antero Midstream Partners | South Jersey vs. Mesa Air 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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