Correlation Between AmTrust Financial and NISOURCE
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By analyzing existing cross correlation between AmTrust Financial Services and NISOURCE INC, you can compare the effects of market volatilities on AmTrust Financial and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and NISOURCE.
Diversification Opportunities for AmTrust Financial and NISOURCE
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AmTrust and NISOURCE is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and NISOURCE INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE INC 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE INC has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and NISOURCE go up and down completely randomly.
Pair Corralation between AmTrust Financial and NISOURCE
Assuming the 90 days horizon AmTrust Financial Services is expected to generate 2.62 times more return on investment than NISOURCE. However, AmTrust Financial is 2.62 times more volatile than NISOURCE INC. It trades about 0.03 of its potential returns per unit of risk. NISOURCE INC is currently generating about -0.01 per unit of risk. If you would invest 1,155 in AmTrust Financial Services on September 12, 2024 and sell it today you would earn a total of 297.00 from holding AmTrust Financial Services or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.0% |
| Values | Daily Returns |
AmTrust Financial Services vs. NISOURCE INC
Performance |
| Timeline |
| AmTrust Financial |
| NISOURCE INC |
AmTrust Financial and NISOURCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and NISOURCE
The main advantage of trading using opposite AmTrust Financial and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE'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 |
| NISOURCE vs. Freedom Bank of | NISOURCE vs. AmTrust Financial Services | NISOURCE vs. Fast Retailing Co | NISOURCE vs. Artisan Partners Asset |
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.
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