Correlation Between Aflac Incorporated and Citizens
Can any of the company-specific risk be diversified away by investing in both Aflac Incorporated and Citizens 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 Aflac Incorporated and Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aflac Incorporated and Citizens, you can compare the effects of market volatilities on Aflac Incorporated and Citizens 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 Aflac Incorporated with a short position of Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aflac Incorporated and Citizens.
Diversification Opportunities for Aflac Incorporated and Citizens
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aflac and Citizens is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aflac Incorporated and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens and Aflac Incorporated 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 Aflac Incorporated are associated (or correlated) with Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of Aflac Incorporated i.e., Aflac Incorporated and Citizens go up and down completely randomly.
Pair Corralation between Aflac Incorporated and Citizens
Considering the 90-day investment horizon Aflac Incorporated is expected to generate 0.41 times more return on investment than Citizens. However, Aflac Incorporated is 2.42 times less risky than Citizens. It trades about -0.2 of its potential returns per unit of risk. Citizens is currently generating about -0.24 per unit of risk. If you would invest 8,449 in Aflac Incorporated on January 17, 2024 and sell it today you would lose (422.00) from holding Aflac Incorporated or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Aflac Incorporated vs. Citizens
Performance |
| Timeline |
| Aflac Incorporated |
| Citizens |
Aflac Incorporated and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aflac Incorporated and Citizens
The main advantage of trading using opposite Aflac Incorporated and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aflac Incorporated position performs unexpectedly, Citizens 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 Citizens will offset losses from the drop in Citizens' long position.| Aflac Incorporated vs. Prudential Financial | Aflac Incorporated vs. Lincoln National | Aflac Incorporated vs. Brighthouse Financial | Aflac Incorporated vs. Unum Group |
| Citizens vs. Vericity | Citizens vs. CNO Financial Group | Citizens vs. National Western Life | Citizens vs. Brighthouse Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |