Correlation Between Philip Morris and KEMPER
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By analyzing existing cross correlation between Philip Morris International and KEMPER P DEL, you can compare the effects of market volatilities on Philip Morris and KEMPER 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 Philip Morris with a short position of KEMPER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and KEMPER.
Diversification Opportunities for Philip Morris and KEMPER
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Philip and KEMPER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and KEMPER P DEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEMPER P DEL and Philip Morris 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 Philip Morris International are associated (or correlated) with KEMPER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEMPER P DEL has no effect on the direction of Philip Morris i.e., Philip Morris and KEMPER go up and down completely randomly.
Pair Corralation between Philip Morris and KEMPER
Allowing for the 90-day total investment horizon Philip Morris International is expected to generate 4.05 times more return on investment than KEMPER. However, Philip Morris is 4.05 times more volatile than KEMPER P DEL. It trades about 0.11 of its potential returns per unit of risk. KEMPER P DEL is currently generating about 0.01 per unit of risk. If you would invest 9,048 in Philip Morris International on September 14, 2024 and sell it today you would earn a total of 3,636 from holding Philip Morris International or generate 40.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.76% |
| Values | Daily Returns |
Philip Morris International vs. KEMPER P DEL
Performance |
| Timeline |
| Philip Morris Intern |
| KEMPER P DEL |
Philip Morris and KEMPER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and KEMPER
The main advantage of trading using opposite Philip Morris and KEMPER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris position performs unexpectedly, KEMPER 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 KEMPER will offset losses from the drop in KEMPER's long position.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
| KEMPER vs. AEP TEX INC | KEMPER vs. US BANK NATIONAL | KEMPER vs. Recursion Pharmaceuticals | KEMPER vs. SoundHound AI |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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