Correlation Between Shoe Carnival and Pekin Life
Can any of the company-specific risk be diversified away by investing in both Shoe Carnival 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 Shoe Carnival and Pekin Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoe Carnival and Pekin Life Insurance, you can compare the effects of market volatilities on Shoe Carnival 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 Shoe Carnival with a short position of Pekin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoe Carnival and Pekin Life.
Diversification Opportunities for Shoe Carnival and Pekin Life
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shoe and Pekin is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival i.e., Shoe Carnival and Pekin Life go up and down completely randomly.
Pair Corralation between Shoe Carnival and Pekin Life
Given the investment horizon of 90 days Shoe Carnival is expected to generate 5.96 times more return on investment than Pekin Life. However, Shoe Carnival is 5.96 times more volatile than Pekin Life Insurance. It trades about 0.06 of its potential returns per unit of risk. Pekin Life Insurance is currently generating about 0.22 per unit of risk. If you would invest 3,460 in Shoe Carnival on September 4, 2024 and sell it today you would earn a total of 100.00 from holding Shoe Carnival or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Shoe Carnival vs. Pekin Life Insurance
Performance |
| Timeline |
| Shoe Carnival |
| Pekin Life Insurance |
Shoe Carnival and Pekin Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoe Carnival and Pekin Life
The main advantage of trading using opposite Shoe Carnival and Pekin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival 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.| Shoe Carnival vs. Appian Corp | Shoe Carnival vs. Okta Inc | Shoe Carnival vs. MongoDB | Shoe Carnival vs. Twilio Inc |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |