Correlation Between Loews Corp and TWFG,

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

By analyzing existing cross correlation between Loews Corp and TWFG, Class A, you can compare the effects of market volatilities on Loews Corp and TWFG, 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 Loews Corp with a short position of TWFG,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loews Corp and TWFG,.

Diversification Opportunities for Loews Corp and TWFG,

0.7

Correlation Coefficient

Loews Corp  TWFG,

Poor diversification

The 3 months correlation between Loews and TWFG, is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Loews Corp and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A and Loews Corp 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 Loews Corp are associated (or correlated) with TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Loews Corp i.e., Loews Corp and TWFG, go up and down completely randomly.

Pair Corralation between Loews Corp and TWFG,

Taking into account the 90-day investment horizon Loews Corp is expected to generate 0.21 times more return on investment than TWFG,. However, Loews Corp is 4.75 times less risky than TWFG,. It trades about -0.03 of its potential returns per unit of risk. TWFG, Class A is currently generating about -0.2 per unit of risk. If you would invest  8,406  in Loews Corp on September 20, 2024 and sell it today you would lose (42.00) from holding Loews Corp or give up 0.5% of portfolio value over 90 days.

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

Loews Corp  vs.  TWFG, Class A

Loews Corp

Risk-Adjusted Performance

6 of 100

Modest

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

TWFG, Class A

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, TWFG, is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Loews Corp and TWFG,

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

The idea behind Loews Corp and TWFG, Class A 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.