Correlation Between Via Renewables and FG Annuities
Can any of the company-specific risk be diversified away by investing in both Via Renewables 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 Via Renewables and FG Annuities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Via Renewables and FG Annuities Life, you can compare the effects of market volatilities on Via Renewables 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 Via Renewables with a short position of FG Annuities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Via Renewables and FG Annuities.
Diversification Opportunities for Via Renewables and FG Annuities
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Via and FG Annuities is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Via Renewables 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 Via Renewables 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 Via Renewables 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 Via Renewables i.e., Via Renewables and FG Annuities go up and down completely randomly.
Pair Corralation between Via Renewables and FG Annuities
Assuming the 90 days horizon Via Renewables is expected to generate 0.29 times more return on investment than FG Annuities. However, Via Renewables is 3.4 times less risky than FG Annuities. It trades about 0.31 of its potential returns per unit of risk. FG Annuities Life is currently generating about 0.07 per unit of risk. If you would invest 1,959 in Via Renewables on August 30, 2024 and sell it today you would earn a total of 263.00 from holding Via Renewables or generate 13.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Via Renewables vs. FG Annuities Life
Performance |
| Timeline |
| Via Renewables |
| FG Annuities Life |
Via Renewables and FG Annuities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Via Renewables and FG Annuities
The main advantage of trading using opposite Via Renewables and FG Annuities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Via Renewables 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.| Via Renewables vs. CMS Energy | Via Renewables vs. ACRES Commercial Realty | Via Renewables vs. Atlanticus Holdings Corp |
| FG Annuities vs. CNO Financial Group | FG Annuities vs. MetLife Preferred Stock | FG Annuities vs. Prudential Public Limited | FG Annuities vs. Brighthouse Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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