Correlation Analysis Between American Financial and CNA Financial

This module allows you to analyze existing cross correlation between American Financial Group and CNA Financial Corporation. You can compare the effects of market volatilities on American Financial and CNA 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 American Financial with a short position of CNA Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of American Financial and CNA Financial.
Horizon     30 Days    Login   to change
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Comparative Performance

American Financial  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in American Financial Group are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, American Financial may actually be approaching a critical reversion point that can send shares even higher in December 2019.
CNA Financial  
00

Risk-Adjusted Performance

Over the last 30 days CNA Financial Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CNA Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

American Financial and CNA Financial Volatility Contrast

 Predicted Return Density 
      Returns 

American Financial Group Inc  vs.  CNA Financial Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, American Financial Group is expected to generate 0.89 times more return on investment than CNA Financial. However, American Financial Group is 1.12 times less risky than CNA Financial. It trades about 0.17 of its potential returns per unit of risk. CNA Financial Corporation is currently generating about -0.05 per unit of risk. If you would invest  9,826  in American Financial Group on October 14, 2019 and sell it today you would earn a total of  1,114  from holding American Financial Group or generate 11.34% return on investment over 30 days.

Pair Corralation between American Financial and CNA Financial

0.16
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for American Financial and CNA Financial

American Financial Group Inc diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding American Financial Group Inc and CNA Financial Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on CNA Financial and American Financial 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 American Financial Group are associated (or correlated) with CNA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNA Financial has no effect on the direction of American Financial i.e. American Financial and CNA Financial go up and down completely randomly.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
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