Correlation Between SCIENCE IN and COREBRIDGE FINANCIAL

Can any of the company-specific risk be diversified away by investing in both SCIENCE IN and COREBRIDGE FINANCIAL 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 SCIENCE IN and COREBRIDGE FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCIENCE IN SPORT and COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on SCIENCE IN and COREBRIDGE FINANCIAL 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 SCIENCE IN with a short position of COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCIENCE IN and COREBRIDGE FINANCIAL.

Diversification Opportunities for SCIENCE IN and COREBRIDGE FINANCIAL

-0.02

Correlation Coefficient

SCIENCE IN  COREBRIDGE FINANCIAL

Good diversification

The 3 months correlation between SCIENCE and COREBRIDGE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL INC and SCIENCE IN 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 SCIENCE IN SPORT are associated (or correlated) with COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of SCIENCE IN i.e., SCIENCE IN and COREBRIDGE FINANCIAL go up and down completely randomly.

Pair Corralation between SCIENCE IN and COREBRIDGE FINANCIAL

Assuming the 90 days horizon SCIENCE IN SPORT is expected to under-perform the COREBRIDGE FINANCIAL. In addition to that, SCIENCE IN is 1.45 times more volatile than COREBRIDGE FINANCIAL INC. It trades about -0.02 of its total potential returns per unit of risk. COREBRIDGE FINANCIAL INC is currently generating about 0.07 per unit of volatility. If you would invest  2,798  in COREBRIDGE FINANCIAL INC on December 22, 2024 and sell it today you would earn a total of  202.00  from holding COREBRIDGE FINANCIAL INC or generate 7.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SCIENCE IN SPORT  vs.  COREBRIDGE FINANCIAL INC

SCIENCE IN SPORT

Risk-Adjusted Performance

Very Weak

Over the last 90 days SCIENCE IN SPORT has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SCIENCE IN is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

COREBRIDGE FINANCIAL INC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COREBRIDGE FINANCIAL INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, COREBRIDGE FINANCIAL may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with SCIENCE IN and COREBRIDGE FINANCIAL

The main advantage of trading using opposite SCIENCE IN and COREBRIDGE FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCIENCE IN position performs unexpectedly, COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL will offset losses from the drop in COREBRIDGE FINANCIAL's long position.

The idea behind SCIENCE IN SPORT and COREBRIDGE FINANCIAL INC 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.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.