Correlation Between Equitable Holdings and IA FINANCIAL

Can any of the company-specific risk be diversified away by investing in both Equitable Holdings and IA 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 Equitable Holdings and IA FINANCIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Equitable Holdings and IA FINANCIAL P, you can compare the effects of market volatilities on Equitable Holdings and IA 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 Equitable Holdings with a short position of IA FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitable Holdings and IA FINANCIAL.

Diversification Opportunities for Equitable Holdings and IA FINANCIAL

0.69

Correlation Coefficient

Equitable Holdings  IA FINANCIAL

Poor diversification

The 3 months correlation between Equitable and 1OD is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Equitable Holdings and IA FINANCIAL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA FINANCIAL P and Equitable Holdings 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 Equitable Holdings are associated (or correlated) with IA FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA FINANCIAL P has no effect on the direction of Equitable Holdings i.e., Equitable Holdings and IA FINANCIAL go up and down completely randomly.

Pair Corralation between Equitable Holdings and IA FINANCIAL

Assuming the 90 days horizon Equitable Holdings is expected to generate 1.46 times less return on investment than IA FINANCIAL. In addition to that, Equitable Holdings is 1.32 times more volatile than IA FINANCIAL P. It trades about 0.08 of its total potential returns per unit of risk. IA FINANCIAL P is currently generating about 0.16 per unit of volatility. If you would invest  7,998  in IA FINANCIAL P on April 23, 2025 and sell it today you would earn a total of  1,052  from holding IA FINANCIAL P or generate 13.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Equitable Holdings  vs.  IA FINANCIAL P

Equitable Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Equitable Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Equitable Holdings may actually be approaching a critical reversion point that can send shares even higher in August 2025.

IA FINANCIAL P

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IA FINANCIAL P are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, IA FINANCIAL reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Equitable Holdings and IA FINANCIAL

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

The idea behind Equitable Holdings and IA FINANCIAL P 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 Global Correlations module to find global opportunities by holding instruments from different markets.