Correlation Analysis Between Principal Financial and AFLAC Incorporated

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

Principal Financial  
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Risk-Adjusted Performance

Over the last 30 days Principal Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
AFLAC Incorporated  
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Risk-Adjusted Performance

Over the last 30 days AFLAC Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the business stakeholders.

Principal Financial and AFLAC Incorporated Volatility Contrast

 Predicted Return Density 
      Returns 

Principal Financial Group Inc  vs.  AFLAC Incorporated

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Principal Financial Group is expected to generate 1.22 times more return on investment than AFLAC Incorporated. However, Principal Financial is 1.22 times more volatile than AFLAC Incorporated. It trades about -0.09 of its potential returns per unit of risk. AFLAC Incorporated is currently generating about -0.2 per unit of risk. If you would invest  5,643  in Principal Financial Group on July 25, 2019 and sell it today you would lose (412.00)  from holding Principal Financial Group or give up 7.3% of portfolio value over 30 days.

Pair Corralation between Principal Financial and AFLAC Incorporated

0.74
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Principal Financial and AFLAC Incorporated

Principal Financial Group Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Principal Financial Group Inc and AFLAC Incorporated in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on AFLAC Incorporated and Principal 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 Principal Financial Group are associated (or correlated) with AFLAC Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC Incorporated has no effect on the direction of Principal Financial i.e. Principal Financial and AFLAC Incorporated go up and down completely randomly.
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