Correlation Between Aspen Insurance and Mosaic
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance and Mosaic 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 Mosaic 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 The Mosaic, you can compare the effects of market volatilities on Aspen Insurance and Mosaic 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 Mosaic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and Mosaic.
Diversification Opportunities for Aspen Insurance and Mosaic
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspen and Mosaic is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and Mosaic go up and down completely randomly.
Pair Corralation between Aspen Insurance and Mosaic
Assuming the 90 days trading horizon Aspen Insurance Holdings is expected to generate 0.66 times more return on investment than Mosaic. However, Aspen Insurance Holdings is 1.51 times less risky than Mosaic. It trades about 0.07 of its potential returns per unit of risk. The Mosaic is currently generating about -0.09 per unit of risk. If you would invest 2,100 in Aspen Insurance Holdings on August 31, 2024 and sell it today you would earn a total of 52.00 from holding Aspen Insurance Holdings or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. The Mosaic
Performance |
| Timeline |
| Aspen Insurance Holdings |
| Mosaic |
Aspen Insurance and Mosaic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and Mosaic
The main advantage of trading using opposite Aspen Insurance and Mosaic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, Mosaic 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 Mosaic will offset losses from the drop in Mosaic's 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 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |