Correlation Between Seaboard and Allstate
Can any of the company-specific risk be diversified away by investing in both Seaboard and Allstate 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 Seaboard and Allstate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seaboard and The Allstate, you can compare the effects of market volatilities on Seaboard and Allstate 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 Seaboard with a short position of Allstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seaboard and Allstate.
Diversification Opportunities for Seaboard and Allstate
Excellent diversification
The 3 months correlation between Seaboard and Allstate is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Seaboard and The Allstate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allstate and Seaboard 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 Seaboard are associated (or correlated) with Allstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allstate has no effect on the direction of Seaboard i.e., Seaboard and Allstate go up and down completely randomly.
Pair Corralation between Seaboard and Allstate
Assuming the 90 days horizon Seaboard is expected to generate 1.06 times more return on investment than Allstate. However, Seaboard is 1.06 times more volatile than The Allstate. It trades about 0.11 of its potential returns per unit of risk. The Allstate is currently generating about -0.01 per unit of risk. If you would invest 231,790 in Seaboard on April 25, 2025 and sell it today you would earn a total of 24,210 from holding Seaboard or generate 10.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Seaboard vs. The Allstate
Performance |
Timeline |
Seaboard |
Allstate |
Seaboard and Allstate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Seaboard and Allstate
The main advantage of trading using opposite Seaboard and Allstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seaboard position performs unexpectedly, Allstate 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 Allstate will offset losses from the drop in Allstate's long position.Seaboard vs. DISCOVERY SILVER P | Seaboard vs. FOKUS MINING P | Seaboard vs. SEALED AIR | Seaboard vs. Monument Mining Limited |
Allstate vs. Osisko Metals | Allstate vs. PARKEN Sport Entertainment | Allstate vs. Chalice Mining Limited | Allstate vs. ARDAGH METAL PACDL 0001 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |