Correlation Between Till Capital and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Till Capital and FG Annuities 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 Till Capital and FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Till Capital and FG Annuities Life, you can compare the effects of market volatilities on Till Capital and FG Annuities 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 Till Capital with a short position of FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Till Capital and FG Annuities.
Diversification Opportunities for Till Capital and FG Annuities
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Till and FGN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Till Capital and FG Annuities Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Annuities Life and Till Capital 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 Till Capital are associated (or correlated) with FG Annuities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Annuities Life has no effect on the direction of Till Capital i.e., Till Capital and FG Annuities go up and down completely randomly.
Pair Corralation between Till Capital and FG Annuities
Assuming the 90 days horizon Till Capital is expected to generate 10.06 times more return on investment than FG Annuities. However, Till Capital is 10.06 times more volatile than FG Annuities Life. It trades about 0.11 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.16 per unit of risk. If you would invest 400.00 in Till Capital on September 2, 2024 and sell it today you would earn a total of 60.00 from holding Till Capital or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 15.92% |
| Values | Daily Returns |
Till Capital vs. FG Annuities Life
Performance |
| Timeline |
| Till Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FG Annuities Life |
Till Capital and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Till Capital and FG Annuities
The main advantage of trading using opposite Till Capital and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Till Capital position performs unexpectedly, FG Annuities 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 FG Annuities will offset losses from the drop in FG Annuities' long position.| Till Capital vs. GE Vernova LLC | Till Capital vs. Southwest Gas Holdings | Till Capital vs. WT Offshore | Till Capital vs. Cheniere Energy Partners |
| FG Annuities vs. Asure Software | FG Annuities vs. Sapiens International | FG Annuities vs. RCI Hospitality Holdings | FG Annuities vs. CAVA Group, |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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