Pair Correlation Between Baldwin Lyons and Loews

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 and Loews.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Baldwin Lyons Inc  vs   Loews Corp.
 Performance (%) 
      Timeline 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between Baldwin Lyons and Loews
0.2

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Weak
Accuracy95.0%
ValuesDaily Returns

Diversification

Modest diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Baldwin Lyons Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Baldwin Lyons Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Loews

  
27 

Risk-Adjusted Performance

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.