Correlation Between Assurant and James River
Can any of the company-specific risk be diversified away by investing in both Assurant and James River 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 Assurant and James River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and James River Group, you can compare the effects of market volatilities on Assurant and James River 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 Assurant with a short position of James River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and James River.
Diversification Opportunities for Assurant and James River
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Assurant and James is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and James River Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James River Group and Assurant 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 Assurant are associated (or correlated) with James River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James River Group has no effect on the direction of Assurant i.e., Assurant and James River go up and down completely randomly.
Pair Corralation between Assurant and James River
Considering the 90-day investment horizon Assurant is expected to under-perform the James River. In addition to that, Assurant is 1.07 times more volatile than James River Group. It trades about -0.1 of its total potential returns per unit of risk. James River Group is currently generating about 0.18 per unit of volatility. If you would invest 402.00 in James River Group on January 12, 2025 and sell it today you would earn a total of 42.00 from holding James River Group or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. James River Group
Performance |
| Timeline |
| Assurant |
| James River Group |
Assurant and James River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and James River
The main advantage of trading using opposite Assurant and James River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, James River 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 James River will offset losses from the drop in James River's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| James River vs. Employers Holdings | James River vs. Investors Title | James River vs. AMERISAFE | James River vs. Essent Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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