Correlation Between Assured Guaranty and Triad Guaranty
Can any of the company-specific risk be diversified away by investing in both Assured Guaranty and Triad Guaranty 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 Assured Guaranty and Triad Guaranty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assured Guaranty and Triad Guaranty, you can compare the effects of market volatilities on Assured Guaranty and Triad Guaranty 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 Assured Guaranty with a short position of Triad Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assured Guaranty and Triad Guaranty.
Diversification Opportunities for Assured Guaranty and Triad Guaranty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Assured and Triad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Assured Guaranty and Triad Guaranty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Guaranty and Assured Guaranty 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 Assured Guaranty are associated (or correlated) with Triad Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Guaranty has no effect on the direction of Assured Guaranty i.e., Assured Guaranty and Triad Guaranty go up and down completely randomly.
Pair Corralation between Assured Guaranty and Triad Guaranty
If you would invest 8,256 in Assured Guaranty on September 2, 2024 and sell it today you would earn a total of 1,072 from holding Assured Guaranty or generate 12.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assured Guaranty vs. Triad Guaranty
Performance |
| Timeline |
| Assured Guaranty |
| Triad Guaranty |
Assured Guaranty and Triad Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assured Guaranty and Triad Guaranty
The main advantage of trading using opposite Assured Guaranty and Triad Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assured Guaranty position performs unexpectedly, Triad Guaranty 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 Triad Guaranty will offset losses from the drop in Triad Guaranty's long position.| Assured Guaranty vs. Employers Holdings | Assured Guaranty vs. AMERISAFE | Assured Guaranty vs. NMI Holdings | Assured Guaranty vs. Investors Title |
| Triad Guaranty vs. Trupanion | Triad Guaranty vs. Essent Group | Triad Guaranty vs. Enact Holdings | Triad Guaranty vs. Assured Guaranty |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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