Correlation Between MARKET VECTR and Allstate

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

By analyzing existing cross correlation between MARKET VECTR RETAIL and The Allstate, you can compare the effects of market volatilities on MARKET VECTR 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 MARKET VECTR with a short position of Allstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARKET VECTR and Allstate.

Diversification Opportunities for MARKET VECTR and Allstate

0.59

Correlation Coefficient

MARKET VECTR  Allstate

Very weak diversification

The 3 months correlation between MARKET and Allstate is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding MARKET VECTR RETAIL and The Allstate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allstate and MARKET VECTR 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 MARKET VECTR RETAIL 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 MARKET VECTR i.e., MARKET VECTR and Allstate go up and down completely randomly.

Pair Corralation between MARKET VECTR and Allstate

Assuming the 90 days trading horizon MARKET VECTR RETAIL is expected to generate 0.63 times more return on investment than Allstate. However, MARKET VECTR RETAIL is 1.6 times less risky than Allstate. It trades about 0.11 of its potential returns per unit of risk. The Allstate is currently generating about 0.03 per unit of risk. If you would invest  19,190  in MARKET VECTR RETAIL on April 20, 2025 and sell it today you would earn a total of  1,255  from holding MARKET VECTR RETAIL or generate 6.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

MARKET VECTR RETAIL  vs.  The Allstate

MARKET VECTR RETAIL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MARKET VECTR RETAIL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, MARKET VECTR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Allstate

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in The Allstate are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Allstate is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MARKET VECTR and Allstate

The main advantage of trading using opposite MARKET VECTR and Allstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARKET VECTR 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.

The idea behind MARKET VECTR RETAIL and The Allstate 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.