Correlation Between AmTrust Financial and Roadzen
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and Roadzen 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 AmTrust Financial and Roadzen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmTrust Financial Services and Roadzen, you can compare the effects of market volatilities on AmTrust Financial and Roadzen 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 AmTrust Financial with a short position of Roadzen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and Roadzen.
Diversification Opportunities for AmTrust Financial and Roadzen
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between AmTrust and Roadzen is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and Roadzen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roadzen and AmTrust 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 AmTrust Financial Services are associated (or correlated) with Roadzen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roadzen has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and Roadzen go up and down completely randomly.
Pair Corralation between AmTrust Financial and Roadzen
Assuming the 90 days horizon AmTrust Financial is expected to generate 28.39 times less return on investment than Roadzen. But when comparing it to its historical volatility, AmTrust Financial Services is 5.4 times less risky than Roadzen. It trades about 0.05 of its potential returns per unit of risk. Roadzen is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Roadzen on September 13, 2024 and sell it today you would earn a total of 84.00 from holding Roadzen or generate 96.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
AmTrust Financial Services vs. Roadzen
Performance |
| Timeline |
| AmTrust Financial |
| Roadzen |
AmTrust Financial and Roadzen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and Roadzen
The main advantage of trading using opposite AmTrust Financial and Roadzen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, Roadzen 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 Roadzen will offset losses from the drop in Roadzen's long position.| AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services | AmTrust Financial vs. AmTrust Financial Services |
| Roadzen vs. Dave Warrants | Roadzen vs. Swvl Holdings Corp | Roadzen vs. Guardforce AI Co | Roadzen vs. Thayer Ventures Acquisition |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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