Correlation Between Pekin Life and Western Metals
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Western Metals 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 Western Metals 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 Western Metals, you can compare the effects of market volatilities on Pekin Life and Western Metals 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 Western Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Western Metals.
Diversification Opportunities for Pekin Life and Western Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pekin and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and Western Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metals 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 Western Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metals has no effect on the direction of Pekin Life i.e., Pekin Life and Western Metals go up and down completely randomly.
Pair Corralation between Pekin Life and Western Metals
If you would invest 1,150 in Pekin Life Insurance on September 12, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Pekin Life Insurance vs. Western Metals
Performance |
| Timeline |
| Pekin Life Insurance |
| Western Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pekin Life and Western Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pekin Life and Western Metals
The main advantage of trading using opposite Pekin Life and Western Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Western Metals 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 Western Metals will offset losses from the drop in Western Metals' 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 |
| Western Metals vs. Oatly Group AB | Western Metals vs. Infosys Ltd ADR | Western Metals vs. Zhihu Inc ADR | Western Metals vs. FactSet Research Systems |
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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