Correlation Between Stagwell and ALLSTATE
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By analyzing existing cross correlation between Stagwell and ALLSTATE P 535, you can compare the effects of market volatilities on Stagwell and ALLSTATE 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 Stagwell with a short position of ALLSTATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and ALLSTATE.
Diversification Opportunities for Stagwell and ALLSTATE
Very good diversification
The 3 months correlation between Stagwell and ALLSTATE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and ALLSTATE P 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLSTATE P 535 and Stagwell 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 Stagwell are associated (or correlated) with ALLSTATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLSTATE P 535 has no effect on the direction of Stagwell i.e., Stagwell and ALLSTATE go up and down completely randomly.
Pair Corralation between Stagwell and ALLSTATE
Given the investment horizon of 90 days Stagwell is expected to under-perform the ALLSTATE. In addition to that, Stagwell is 2.79 times more volatile than ALLSTATE P 535. It trades about -0.1 of its total potential returns per unit of risk. ALLSTATE P 535 is currently generating about 0.06 per unit of volatility. If you would invest 10,127 in ALLSTATE P 535 on October 7, 2024 and sell it today you would earn a total of 139.00 from holding ALLSTATE P 535 or generate 1.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 78.05% |
Values | Daily Returns |
Stagwell vs. ALLSTATE P 535
Performance |
Timeline |
Stagwell |
ALLSTATE P 535 |
Stagwell and ALLSTATE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stagwell and ALLSTATE
The main advantage of trading using opposite Stagwell and ALLSTATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, ALLSTATE 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 ALLSTATE will offset losses from the drop in ALLSTATE's long position.Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
ALLSTATE vs. Sonos Inc | ALLSTATE vs. CTS Corporation | ALLSTATE vs. NetEase | ALLSTATE vs. Alignment Healthcare LLC |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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