Correlation Between Pekin Life and INTNED

Can any of the company-specific risk be diversified away by investing in both Pekin Life and INTNED 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 INTNED 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 INTNED 547761 01 APR 27, you can compare the effects of market volatilities on Pekin Life and INTNED 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 INTNED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pekin Life and INTNED.

Diversification Opportunities for Pekin Life and INTNED

-0.17

Correlation Coefficient

Pekin Life  INTNED

Good diversification

The 3 months correlation between Pekin and INTNED is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pekin Life Insurance and INTNED 547761 01 APR 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTNED 547761 01 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 INTNED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTNED 547761 01 has no effect on the direction of Pekin Life i.e., Pekin Life and INTNED go up and down completely randomly.

Pair Corralation between Pekin Life and INTNED

Given the investment horizon of 90 days Pekin Life is expected to generate 1.7 times less return on investment than INTNED. In addition to that, Pekin Life is 2.94 times more volatile than INTNED 547761 01 APR 27. It trades about 0.01 of its total potential returns per unit of risk. INTNED 547761 01 APR 27 is currently generating about 0.04 per unit of volatility. If you would invest  9,650  in INTNED 547761 01 APR 27 on September 19, 2024 and sell it today you would earn a total of  365.00  from holding INTNED 547761 01 APR 27 or generate 3.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	32.53%
Values	Daily Returns

Pekin Life Insurance  vs.  INTNED 547761 01 APR 27

Pekin Life Insurance

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Pekin Life Insurance are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, Pekin Life is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

INTNED 547761 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 547761 01 APR 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pekin Life and INTNED

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

The idea behind Pekin Life Insurance and INTNED 547761 01 APR 27 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.