American Financial Correlations

AFG Stock

USD 124.96 0.02 0.02%

The current 90-days correlation between American Financial and Selective Insurance Group is 0.45 (i.e., Very weak diversification). The correlation of American Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

American Financial Correlation With Market

Poor diversification

The correlation between American Financial Group and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding American Financial Group and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Financial Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.

Moving against American Stock

0.44	PGR	Progressive Corp	Pair Corr
0.38	HMN	Horace Mann Educators	Pair Corr
0.38	STC	Stewart Information	Pair Corr
0.41	PLMR	Palomar Holdings	Pair Corr
0.39	ALL-PJ	Allstate	Pair Corr
0.37	ROOT	Root Inc	Pair Corr
0.45	SKWD	Skyward Specialty	Pair Corr
0.31	DGICA	Donegal Group A	Pair Corr

Related Correlations Analysis

	SIGI	HMN	KMPR	PRA	CNA	RLI	GBLI	ARGO-PA	CB	ALL
SIGI		-0.16	0.12	0.26	0.21	0.39	0.14	-0.04	0.22	0.22	SIGI
HMN	-0.16		0.29	0.55	0.65	0.41	-0.06	0.8	0.76	0.74	HMN
KMPR	0.12	0.29		-0.28	0.69	0.25	0.72	0.35	0.25	0.51	KMPR
PRA	0.26	0.55	-0.28		0.31	0.47	-0.4	0.43	0.65	0.5	PRA
CNA	0.21	0.65	0.69	0.31		0.44	0.3	0.59	0.62	0.72	CNA
RLI	0.39	0.41	0.25	0.47	0.44		0.01	0.23	0.47	0.46	RLI
GBLI	0.14	-0.06	0.72	-0.4	0.3	0.01		0.09	-0.05	0.24	GBLI
ARGO-PA	-0.04	0.8	0.35	0.43	0.59	0.23	0.09		0.87	0.85	ARGO-PA
CB	0.22	0.76	0.25	0.65	0.62	0.47	-0.05	0.87		0.92	CB
ALL	0.22	0.74	0.51	0.5	0.72	0.46	0.24	0.85	0.92		ALL
	SIGI	HMN	KMPR	PRA	CNA	RLI	GBLI	ARGO-PA	CB	ALL

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ALL	+ 0.92	CB
CB	+ 0.87	ARGO-PA
ALL	+ 0.85	ARGO-PA
ARGO-PA	+ 0.8	HMN
CB	+ 0.76	HMN
ALL	+ 0.74	HMN

High negative correlations

GBLI	- 0.4	PRA
PRA	- 0.28	KMPR
HMN	- 0.16	SIGI
GBLI	- 0.06	HMN
CB	- 0.05	GBLI
ARGO-PA	- 0.04	SIGI

Risk-Adjusted Indicators

There is a big difference between American Stock performing well and American Financial Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze American Financial's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
SIGI	1.54	0.01	0.00	(0.10)	0.00	0.00	2.75	(3.11)	15.02
HMN	1.30	0.16	0.11	0.20	1.74	(1.27)	2.19	(2.81)	9.56
KMPR	1.57	(0.03)	0.00	(0.14)	0.00	0.00	2.92	(3.04)	14.62
PRA	2.24	0.80	0.42	2.43	1.28	(2.71)	2.91	(2.91)	48.65
CNA	1.21	0.12	0.08	0.06	1.86	(1.26)	2.18	(2.97)	10.45
RLI	1.23	(0.01)	0.00	(0.14)	0.00	0.00	1.90	(3.12)	9.92
GBLI	1.71	(0.21)	0.00	(0.75)	0.00	0.00	4.00	(4.48)	13.26
ARGO-PA	0.13	0.00	0.55	(0.04)	0.14	(0.14)	0.24	(0.28)	0.84
CB	1.16	0.15	0.11	0.17	1.64	(1.19)	2.32	(2.27)	10.87
ALL	1.50	0.15	0.07	0.07	2.34	(1.49)	3.10	(2.66)	12.96

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