This module allows you to analyze existing cross correlation between Baldwin Lyons Inc and Loews Corporation. You can compare the effects of market volatilities on Baldwin Lyons and Loews 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 Baldwin Lyons with a short position of Loews. See also your portfolio center
. Please also check ongoing floating volatility patterns of Baldwin Lyons
Baldwin Lyons Inc vs Loews Corp.
Assuming 30 trading days horizon, Baldwin Lyons Inc is expected to under-perform the Loews. In addition to that, Baldwin Lyons is 1.8 times more volatile than Loews Corporation. It trades about -0.01 of its total potential returns per unit of risk. Loews Corporation is currently generating about 0.42 per unit of volatility. If you would invest 4,992 in Loews Corporation on December 24, 2017 and sell it today you would earn a total of 298 from holding Loews Corporation or generate 5.97% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding Baldwin Lyons Inc and Loews Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Loews and Baldwin Lyons 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 Baldwin Lyons Inc are associated (or correlated) with Loews. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews has no effect on the direction of Baldwin Lyons i.e. Baldwin Lyons and Loews go up and down completely randomly.
Over the last 30 days Baldwin Lyons Inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Loews Corporation are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.