Correlation Analysis Between Principal Financial and EMERGENT CAPITAL

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

Principal Financial  
00

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.
EMERGENT CAPITAL INC  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in EMERGENT CAPITAL INC are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, EMERGENT CAPITAL sustained solid returns over the last few months and may actually be approaching a breakup point.

Principal Financial and EMERGENT CAPITAL Volatility Contrast

 Predicted Return Density 
      Returns 

Principal Financial Group Inc  vs.  EMERGENT CAPITAL INC

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Principal Financial Group is expected to under-perform the EMERGENT CAPITAL. But the stock apears to be less risky and, when comparing its historical volatility, Principal Financial Group is 3.57 times less risky than EMERGENT CAPITAL. The stock trades about -0.09 of its potential returns per unit of risk. The EMERGENT CAPITAL INC is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  16.00  in EMERGENT CAPITAL INC on July 25, 2019 and sell it today you would earn a total of  12.00  from holding EMERGENT CAPITAL INC or generate 75.0% return on investment over 30 days.

Pair Corralation between Principal Financial and EMERGENT CAPITAL

-0.66
Time Period2 Months [change]
DirectionNegative 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Diversification Opportunities for Principal Financial and EMERGENT CAPITAL

Principal Financial Group Inc diversification synergy

Excellent diversification

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