Correlation Between Aspen Insurance and MARKEL
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By analyzing existing cross correlation between Aspen Insurance Holdings and MARKEL P 43, you can compare the effects of market volatilities on Aspen Insurance and MARKEL 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 MARKEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and MARKEL.
Diversification Opportunities for Aspen Insurance and MARKEL
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Aspen and MARKEL is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and MARKEL P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKEL P 43 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 MARKEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKEL P 43 has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and MARKEL go up and down completely randomly.
Pair Corralation between Aspen Insurance and MARKEL
Assuming the 90 days trading horizon Aspen Insurance is expected to generate 3.76 times less return on investment than MARKEL. In addition to that, Aspen Insurance is 1.54 times more volatile than MARKEL P 43. It trades about 0.1 of its total potential returns per unit of risk. MARKEL P 43 is currently generating about 0.59 per unit of volatility. If you would invest 7,946 in MARKEL P 43 on September 4, 2024 and sell it today you would earn a total of 306.00 from holding MARKEL P 43 or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. MARKEL P 43
Performance |
| Timeline |
| Aspen Insurance Holdings |
| MARKEL P 43 |
Aspen Insurance and MARKEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and MARKEL
The main advantage of trading using opposite Aspen Insurance and MARKEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, MARKEL 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 MARKEL will offset losses from the drop in MARKEL'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 |
| MARKEL vs. Hooker Furniture | MARKEL vs. Live Ventures | MARKEL vs. Bassett Furniture Industries | MARKEL vs. The Coca Cola |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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