Correlation Between Aspen Insurance and Usio
Can any of the company-specific risk be diversified away by investing in both Aspen Insurance and Usio 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 Usio 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 Usio Inc, you can compare the effects of market volatilities on Aspen Insurance and Usio 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 Usio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and Usio.
Diversification Opportunities for Aspen Insurance and Usio
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aspen and Usio is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and Usio Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usio Inc 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 Usio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usio Inc has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and Usio go up and down completely randomly.
Pair Corralation between Aspen Insurance and Usio
Assuming the 90 days trading horizon Aspen Insurance Holdings is expected to generate 0.42 times more return on investment than Usio. However, Aspen Insurance Holdings is 2.38 times less risky than Usio. It trades about 0.05 of its potential returns per unit of risk. Usio Inc is currently generating about 0.02 per unit of risk. If you would invest 1,627 in Aspen Insurance Holdings on September 12, 2024 and sell it today you would earn a total of 560.00 from holding Aspen Insurance Holdings or generate 34.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aspen Insurance Holdings vs. Usio Inc
Performance |
| Timeline |
| Aspen Insurance Holdings |
| Usio Inc |
Aspen Insurance and Usio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Insurance and Usio
The main advantage of trading using opposite Aspen Insurance and Usio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, Usio 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 Usio will offset losses from the drop in Usio'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 |
| Usio vs. Appen Limited | Usio vs. Value Exchange International | Usio vs. Appen Limited | Usio vs. Deveron Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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