Correlation Between Aspen Insurance and Concert Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance and Concert Pharmaceuticals 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 Aspen Insurance and Concert Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Insurance Holdings and Concert Pharmaceuticals, you can compare the effects of market volatilities on Aspen Insurance and Concert Pharmaceuticals 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 Aspen Insurance with a short position of Concert Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and Concert Pharmaceuticals.
Diversification Opportunities for Aspen Insurance and Concert Pharmaceuticals
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aspen and Concert is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and Concert Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concert Pharmaceuticals and Aspen Insurance 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 Aspen Insurance Holdings are associated (or correlated) with Concert Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concert Pharmaceuticals has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and Concert Pharmaceuticals go up and down completely randomly.
Pair Corralation between Aspen Insurance and Concert Pharmaceuticals
If you would invest 2,106 in Aspen Insurance Holdings on August 30, 2024 and sell it today you would earn a total of 46.00 from holding Aspen Insurance Holdings or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. Concert Pharmaceuticals
Performance |
| Timeline |
| Aspen Insurance Holdings |
| Concert Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Aspen Insurance and Concert Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and Concert Pharmaceuticals
The main advantage of trading using opposite Aspen Insurance and Concert Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, Concert Pharmaceuticals 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 Concert Pharmaceuticals will offset losses from the drop in Concert Pharmaceuticals' long position.| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
| Concert Pharmaceuticals vs. Weyco Group | Concert Pharmaceuticals vs. Tower One Wireless | Concert Pharmaceuticals vs. Dine Brands Global | Concert Pharmaceuticals vs. Hudson Pacific Properties |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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