Correlation Between Brighthouse Financial and Conifer Holdings
Can any of the company-specific risk be diversified away by investing in both Brighthouse Financial and Conifer Holdings 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 Brighthouse Financial and Conifer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brighthouse Financial and Conifer Holdings Senior, you can compare the effects of market volatilities on Brighthouse Financial and Conifer Holdings 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 Brighthouse Financial with a short position of Conifer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brighthouse Financial and Conifer Holdings.
Diversification Opportunities for Brighthouse Financial and Conifer Holdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brighthouse and Conifer is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Brighthouse Financial and Conifer Holdings Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Conifer Holdings Senior and Brighthouse Financial 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 Brighthouse Financial are associated (or correlated) with Conifer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Conifer Holdings Senior has no effect on the direction of Brighthouse Financial i.e., Brighthouse Financial and Conifer Holdings go up and down completely randomly.
Pair Corralation between Brighthouse Financial and Conifer Holdings
Assuming the 90 days horizon Brighthouse Financial is expected to generate 0.79 times more return on investment than Conifer Holdings. However, Brighthouse Financial is 1.26 times less risky than Conifer Holdings. It trades about 0.03 of its potential returns per unit of risk. Conifer Holdings Senior is currently generating about -0.01 per unit of risk. If you would invest 2,129 in Brighthouse Financial on September 18, 2024 and sell it today you would earn a total of 283.00 from holding Brighthouse Financial or generate 13.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 28.83% |
Values | Daily Returns |
Brighthouse Financial vs. Conifer Holdings Senior
Performance |
Timeline |
Brighthouse Financial |
Conifer Holdings Senior |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brighthouse Financial and Conifer Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Brighthouse Financial and Conifer Holdings
The main advantage of trading using opposite Brighthouse Financial and Conifer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brighthouse Financial position performs unexpectedly, Conifer Holdings 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 Conifer Holdings will offset losses from the drop in Conifer Holdings' long position.Brighthouse Financial vs. RiverNorth Specialty Finance | Brighthouse Financial vs. Royce Micro Cap | Brighthouse Financial vs. First Trust Enhanced | Brighthouse Financial vs. Voya Global Advantage |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamental Analysis View fundamental data based on most recent published financial statements |