Correlation Between Aspen Insurance and DIH Holdings
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance and DIH Holdings 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 DIH Holdings 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 DIH Holdings US,, you can compare the effects of market volatilities on Aspen Insurance and DIH Holdings 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 DIH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and DIH Holdings.
Diversification Opportunities for Aspen Insurance and DIH Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aspen and DIH is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and DIH Holdings US, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIH Holdings US, 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 DIH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIH Holdings US, has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and DIH Holdings go up and down completely randomly.
Pair Corralation between Aspen Insurance and DIH Holdings
Assuming the 90 days trading horizon Aspen Insurance is expected to generate 4.51 times less return on investment than DIH Holdings. But when comparing it to its historical volatility, Aspen Insurance Holdings is 6.64 times less risky than DIH Holdings. It trades about 0.05 of its potential returns per unit of risk. DIH Holdings US, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 160.00 in DIH Holdings US, on September 14, 2024 and sell it today you would lose (15.00) from holding DIH Holdings US, or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.29% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. DIH Holdings US,
Performance |
| Timeline |
| Aspen Insurance Holdings |
| DIH Holdings US, |
Aspen Insurance and DIH Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and DIH Holdings
The main advantage of trading using opposite Aspen Insurance and DIH Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, DIH Holdings 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 DIH Holdings will offset losses from the drop in DIH Holdings' 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 |
| DIH Holdings vs. JBG SMITH Properties | DIH Holdings vs. Franklin Street Properties | DIH Holdings vs. NETGEAR | DIH Holdings vs. Hooker Furniture |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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