Correlation Between Pekin Life and Baldwin Insurance
Can any of the company-specific risk be diversified away by investing in both Pekin Life and Baldwin Insurance 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 Pekin Life and Baldwin Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pekin Life Insurance and The Baldwin Insurance, you can compare the effects of market volatilities on Pekin Life and Baldwin Insurance 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 Pekin Life with a short position of Baldwin Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and Baldwin Insurance.
Diversification Opportunities for Pekin Life and Baldwin Insurance
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pekin and Baldwin is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and The Baldwin Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baldwin Insurance and Pekin Life 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 Pekin Life Insurance are associated (or correlated) with Baldwin Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baldwin Insurance has no effect on the direction of Pekin Life i.e., Pekin Life and Baldwin Insurance go up and down completely randomly.
Pair Corralation between Pekin Life and Baldwin Insurance
Given the investment horizon of 90 days Pekin Life is expected to generate 670.0 times less return on investment than Baldwin Insurance. But when comparing it to its historical volatility, Pekin Life Insurance is 7.61 times less risky than Baldwin Insurance. It trades about 0.0 of its potential returns per unit of risk. The Baldwin Insurance is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,837 in The Baldwin Insurance on December 28, 2024 and sell it today you would earn a total of 768.00 from holding The Baldwin Insurance or generate 20.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Pekin Life Insurance vs. The Baldwin Insurance
Performance |
Timeline |
Pekin Life Insurance |
Baldwin Insurance |
Pekin Life and Baldwin Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pekin Life and Baldwin Insurance
The main advantage of trading using opposite Pekin Life and Baldwin Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pekin Life position performs unexpectedly, Baldwin Insurance 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 Baldwin Insurance will offset losses from the drop in Baldwin Insurance's long position.Pekin Life vs. FG Annuities Life | Pekin Life vs. MetLife Preferred Stock | Pekin Life vs. Brighthouse Financial | Pekin Life vs. MetLife Preferred Stock |
Baldwin Insurance vs. Dream Office Real | Baldwin Insurance vs. Merit Medical Systems | Baldwin Insurance vs. Hudson Pacific Properties | Baldwin Insurance vs. Diageo PLC ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |