Correlation Between Pekin Life and PLNIJ
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By analyzing existing cross correlation between Pekin Life Insurance and PLNIJ 4125 15 MAY 27, you can compare the effects of market volatilities on Pekin Life and PLNIJ 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 PLNIJ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and PLNIJ.
Diversification Opportunities for Pekin Life and PLNIJ
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Pekin and PLNIJ is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and PLNIJ 4125 15 MAY 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLNIJ 4125 15 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 PLNIJ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLNIJ 4125 15 has no effect on the direction of Pekin Life i.e., Pekin Life and PLNIJ go up and down completely randomly.
Pair Corralation between Pekin Life and PLNIJ
Given the investment horizon of 90 days Pekin Life is expected to generate 1.52 times less return on investment than PLNIJ. But when comparing it to its historical volatility, Pekin Life Insurance is 1.18 times less risky than PLNIJ. It trades about 0.01 of its potential returns per unit of risk. PLNIJ 4125 15 MAY 27 is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,550 in PLNIJ 4125 15 MAY 27 on August 31, 2024 and sell it today you would earn a total of 50.00 from holding PLNIJ 4125 15 MAY 27 or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 15.82% |
| Values | Daily Returns |
Pekin Life Insurance vs. PLNIJ 4125 15 MAY 27
Performance |
| Timeline |
| Pekin Life Insurance |
| PLNIJ 4125 15 |
Pekin Life and PLNIJ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and PLNIJ
The main advantage of trading using opposite Pekin Life and PLNIJ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, PLNIJ 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 PLNIJ will offset losses from the drop in PLNIJ's long position.| Pekin Life vs. HUMANA INC | Pekin Life vs. SCOR PK | Pekin Life vs. Aquagold International | Pekin Life vs. Thrivent High Yield |
| PLNIJ vs. Supercom | PLNIJ vs. Western Acquisition Ventures | PLNIJ vs. Albertsons Companies | PLNIJ vs. NioCorp Developments Ltd |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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