Correlation Between Loews Corp and Atlas Financial
Can any of the company-specific risk be diversified away by investing in both Loews Corp and Atlas Financial 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 Loews Corp and Atlas Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loews Corp and Atlas Financial Holdings, you can compare the effects of market volatilities on Loews Corp and Atlas Financial 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 Loews Corp with a short position of Atlas Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loews Corp and Atlas Financial.
Diversification Opportunities for Loews Corp and Atlas Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loews and Atlas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Loews Corp and Atlas Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Financial Holdings and Loews Corp 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 Loews Corp are associated (or correlated) with Atlas Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Financial Holdings has no effect on the direction of Loews Corp i.e., Loews Corp and Atlas Financial go up and down completely randomly.
Pair Corralation between Loews Corp and Atlas Financial
If you would invest 5,990 in Loews Corp on January 25, 2024 and sell it today you would earn a total of 1,682 from holding Loews Corp or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Loews Corp vs. Atlas Financial Holdings
Performance |
| Timeline |
| Loews Corp |
| Atlas Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Loews Corp and Atlas Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loews Corp and Atlas Financial
The main advantage of trading using opposite Loews Corp and Atlas Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loews Corp position performs unexpectedly, Atlas Financial 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 Atlas Financial will offset losses from the drop in Atlas Financial's long position.| Loews Corp vs. Global Indemnity PLC | Loews Corp vs. Selective Insurance Group | Loews Corp vs. Kemper | Loews Corp vs. Stewart Information Services |
| Atlas Financial vs. Weibo Corp | Atlas Financial vs. El Pollo Loco | Atlas Financial vs. Digi International | Atlas Financial vs. Dine Brands Global |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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