Correlation Between Ohio Variable and Protective Life

Can any of the company-specific risk be diversified away by investing in both Ohio Variable and Protective Life 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 Ohio Variable and Protective Life into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ohio Variable College and Protective Life Dynamic, you can compare the effects of market volatilities on Ohio Variable and Protective Life 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 Ohio Variable with a short position of Protective Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ohio Variable and Protective Life.

Diversification Opportunities for Ohio Variable and Protective Life

0.0

Correlation Coefficient

Ohio Variable  Protective Life

Pay attention - limited upside

The 3 months correlation between Ohio and Protective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ohio Variable College and Protective Life Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protective Life Dynamic and Ohio Variable 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 Ohio Variable College are associated (or correlated) with Protective Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protective Life Dynamic has no effect on the direction of Ohio Variable i.e., Ohio Variable and Protective Life go up and down completely randomly.

Pair Corralation between Ohio Variable and Protective Life

If you would invest (100.00) in Protective Life Dynamic on February 1, 2024 and sell it today you would earn a total of  100.00  from holding Protective Life Dynamic or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ohio Variable College  vs.  Protective Life Dynamic

Ohio Variable College

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ohio Variable College are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ohio Variable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Protective Life Dynamic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Protective Life Dynamic has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy basic indicators, Protective Life is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Ohio Variable and Protective Life

The main advantage of trading using opposite Ohio Variable and Protective Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ohio Variable position performs unexpectedly, Protective Life 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 Protective Life will offset losses from the drop in Protective Life's long position.

The idea behind Ohio Variable College and Protective Life Dynamic pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.