Correlation Between Aspen Insurance and 90345WAD6
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By analyzing existing cross correlation between Aspen Insurance Holdings and AAL 4625 03 JUN 25, you can compare the effects of market volatilities on Aspen Insurance and 90345WAD6 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 90345WAD6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and 90345WAD6.
Diversification Opportunities for Aspen Insurance and 90345WAD6
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aspen and 90345WAD6 is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and AAL 4625 03 JUN 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 4625 03 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 90345WAD6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 4625 03 has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and 90345WAD6 go up and down completely randomly.
Pair Corralation between Aspen Insurance and 90345WAD6
Assuming the 90 days trading horizon Aspen Insurance Holdings is expected to generate 0.31 times more return on investment than 90345WAD6. However, Aspen Insurance Holdings is 3.23 times less risky than 90345WAD6. It trades about 0.12 of its potential returns per unit of risk. AAL 4625 03 JUN 25 is currently generating about -0.21 per unit of risk. If you would invest 2,127 in Aspen Insurance Holdings on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Aspen Insurance Holdings or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 20.0% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. AAL 4625 03 JUN 25
Performance |
| Timeline |
| Aspen Insurance Holdings |
| AAL 4625 03 |
Aspen Insurance and 90345WAD6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and 90345WAD6
The main advantage of trading using opposite Aspen Insurance and 90345WAD6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, 90345WAD6 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 90345WAD6 will offset losses from the drop in 90345WAD6'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 |
| 90345WAD6 vs. Aspen Insurance Holdings | 90345WAD6 vs. Sphere Entertainment Co | 90345WAD6 vs. Palomar Holdings | 90345WAD6 vs. Assurant |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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