Correlation Between Conifer Holding and Horace Mann

Can any of the company-specific risk be diversified away by investing in both Conifer Holding and Horace Mann 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 Conifer Holding and Horace Mann into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Conifer Holding and Horace Mann Educators, you can compare the effects of market volatilities on Conifer Holding and Horace Mann 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 Conifer Holding with a short position of Horace Mann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holding and Horace Mann.

Diversification Opportunities for Conifer Holding and Horace Mann

0.28

Correlation Coefficient

Conifer Holding  Horace Mann

Modest diversification

The 3 months correlation between Conifer and Horace is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holding and Horace Mann Educators in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Horace Mann Educators and Conifer Holding 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 Conifer Holding are associated (or correlated) with Horace Mann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Horace Mann Educators has no effect on the direction of Conifer Holding i.e., Conifer Holding and Horace Mann go up and down completely randomly.

Pair Corralation between Conifer Holding and Horace Mann

Given the investment horizon of 90 days Conifer Holding is expected to under-perform the Horace Mann. In addition to that, Conifer Holding is 1.68 times more volatile than Horace Mann Educators. It trades about -0.07 of its total potential returns per unit of risk. Horace Mann Educators is currently generating about 0.02 per unit of volatility. If you would invest  3,683  in Horace Mann Educators on October 25, 2024 and sell it today you would earn a total of  62.00  from holding Horace Mann Educators or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Conifer Holding  vs.  Horace Mann Educators

Conifer Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Conifer Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Horace Mann Educators

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Horace Mann Educators are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Horace Mann is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Conifer Holding and Horace Mann

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

The idea behind Conifer Holding and Horace Mann Educators 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.