Correlation Between SCOR PK and Pekin Life
Can any of the company-specific risk be diversified away by investing in both SCOR PK and Pekin Life 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 SCOR PK and Pekin Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Pekin Life Insurance, you can compare the effects of market volatilities on SCOR PK and Pekin Life 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 SCOR PK with a short position of Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Pekin Life.
Diversification Opportunities for SCOR PK and Pekin Life
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCOR and Pekin is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and Pekin Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pekin Life Insurance and SCOR PK 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 SCOR PK are associated (or correlated) with Pekin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pekin Life Insurance has no effect on the direction of SCOR PK i.e., SCOR PK and Pekin Life go up and down completely randomly.
Pair Corralation between SCOR PK and Pekin Life
If you would invest 263.00 in SCOR PK on November 29, 2024 and sell it today you would lose (2.00) from holding SCOR PK or give up 0.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR PK vs. Pekin Life Insurance
Performance |
| Timeline |
| SCOR PK |
| Pekin Life Insurance |
SCOR PK and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Pekin Life
The main advantage of trading using opposite SCOR PK and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK position performs unexpectedly, Pekin Life 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 Pekin Life will offset losses from the drop in Pekin Life's long position.The idea behind SCOR PK and Pekin Life Insurance pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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