Correlation Between Pekin Life and 459200KM2
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By analyzing existing cross correlation between Pekin Life Insurance and IBM 22 09 FEB 27, you can compare the effects of market volatilities on Pekin Life and 459200KM2 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 459200KM2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and 459200KM2.
Diversification Opportunities for Pekin Life and 459200KM2
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Pekin and 459200KM2 is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and IBM 22 09 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBM 22 09 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 459200KM2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBM 22 09 has no effect on the direction of Pekin Life i.e., Pekin Life and 459200KM2 go up and down completely randomly.
Pair Corralation between Pekin Life and 459200KM2
Given the investment horizon of 90 days Pekin Life Insurance is expected to generate 0.44 times more return on investment than 459200KM2. However, Pekin Life Insurance is 2.29 times less risky than 459200KM2. It trades about 0.23 of its potential returns per unit of risk. IBM 22 09 FEB 27 is currently generating about -0.36 per unit of risk. If you would invest 1,150 in Pekin Life Insurance on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Pekin Life Insurance or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Pekin Life Insurance vs. IBM 22 09 FEB 27
Performance |
| Timeline |
| Pekin Life Insurance |
| IBM 22 09 |
Pekin Life and 459200KM2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and 459200KM2
The main advantage of trading using opposite Pekin Life and 459200KM2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, 459200KM2 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 459200KM2 will offset losses from the drop in 459200KM2's long position.| Pekin Life vs. Invesco High Income | Pekin Life vs. Blackrock Muniholdings Ny | Pekin Life vs. MFS Investment Grade | Pekin Life vs. Federated Premier Municipal |
| 459200KM2 vs. AEP TEX INC | 459200KM2 vs. US BANK NATIONAL | 459200KM2 vs. 3M Company | 459200KM2 vs. Alcoa Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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