Correlation Between Assurant and Perception Capital
Can any of the company-specific risk be diversified away by investing in both Assurant and Perception Capital 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 Perception Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Perception Capital Corp, you can compare the effects of market volatilities on Assurant and Perception Capital 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 Perception Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Perception Capital.
Diversification Opportunities for Assurant and Perception Capital
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assurant and Perception is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Perception Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perception Capital Corp 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 Perception Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perception Capital Corp has no effect on the direction of Assurant i.e., Assurant and Perception Capital go up and down completely randomly.
Pair Corralation between Assurant and Perception Capital
If you would invest 15,881 in Assurant on September 14, 2024 and sell it today you would earn a total of 5,902 from holding Assurant or generate 37.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Assurant vs. Perception Capital Corp
Performance |
| Timeline |
| Assurant |
| Perception Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Assurant and Perception Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Perception Capital
The main advantage of trading using opposite Assurant and Perception Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Perception Capital 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 Perception Capital will offset losses from the drop in Perception Capital's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Perception Capital vs. Assurant | Perception Capital vs. BorgWarner | Perception Capital vs. United Fire Group | Perception Capital vs. Gentex |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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