Correlation Between Associated Capital and International General
Can any of the company-specific risk be diversified away by investing in both Associated Capital and International General 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 Associated Capital and International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and International General Insurance, you can compare the effects of market volatilities on Associated Capital and International General 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 Associated Capital with a short position of International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and International General.
Diversification Opportunities for Associated Capital and International General
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Associated and International is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General and Associated Capital 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 Associated Capital Group are associated (or correlated) with International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Associated Capital i.e., Associated Capital and International General go up and down completely randomly.
Pair Corralation between Associated Capital and International General
Allowing for the 90-day total investment horizon Associated Capital Group is expected to under-perform the International General. But the stock apears to be less risky and, when comparing its historical volatility, Associated Capital Group is 1.15 times less risky than International General. The stock trades about 0.0 of its potential returns per unit of risk. The International General Insurance is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 742.00 in International General Insurance on August 27, 2024 and sell it today you would earn a total of 1,856 from holding International General Insurance or generate 250.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. International General Insuranc
Performance |
| Timeline |
| Associated Capital |
| International General |
Associated Capital and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and International General
The main advantage of trading using opposite Associated Capital and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.| Associated Capital vs. PowerUp Acquisition Corp | Associated Capital vs. Aurora Innovation | Associated Capital vs. HUMANA INC | Associated Capital vs. Aquagold International |
| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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