Correlation Between Aspen Insurance and 071734AP2
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By analyzing existing cross correlation between Aspen Insurance Holdings and US071734AP21, you can compare the effects of market volatilities on Aspen Insurance and 071734AP2 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 071734AP2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and 071734AP2.
Diversification Opportunities for Aspen Insurance and 071734AP2
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aspen and 071734AP2 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and US071734AP21 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US071734AP21 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 071734AP2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US071734AP21 has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and 071734AP2 go up and down completely randomly.
Pair Corralation between Aspen Insurance and 071734AP2
Assuming the 90 days trading horizon Aspen Insurance Holdings is expected to generate 0.47 times more return on investment than 071734AP2. However, Aspen Insurance Holdings is 2.14 times less risky than 071734AP2. It trades about 0.09 of its potential returns per unit of risk. US071734AP21 is currently generating about -0.24 per unit of risk. If you would invest 2,127 in Aspen Insurance Holdings on September 5, 2024 and sell it today you would earn a total of 61.00 from holding Aspen Insurance Holdings or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. US071734AP21
Performance |
| Timeline |
| Aspen Insurance Holdings |
| US071734AP21 |
Aspen Insurance and 071734AP2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and 071734AP2
The main advantage of trading using opposite Aspen Insurance and 071734AP2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, 071734AP2 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 071734AP2 will offset losses from the drop in 071734AP2'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 |
| 071734AP2 vs. Sea | 071734AP2 vs. ATRenew Inc DRC | 071734AP2 vs. Pinterest | 071734AP2 vs. Cedar Realty Trust |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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