Correlation Between Assurant and Regency Centers
Can any of the company-specific risk be diversified away by investing in both Assurant and Regency Centers 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 Regency Centers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Regency Centers, you can compare the effects of market volatilities on Assurant and Regency Centers 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 Regency Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Regency Centers.
Diversification Opportunities for Assurant and Regency Centers
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Assurant and Regency is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Regency Centers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regency Centers 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 Regency Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regency Centers has no effect on the direction of Assurant i.e., Assurant and Regency Centers go up and down completely randomly.
Pair Corralation between Assurant and Regency Centers
Considering the 90-day investment horizon Assurant is expected to generate 1.57 times more return on investment than Regency Centers. However, Assurant is 1.57 times more volatile than Regency Centers. It trades about 0.52 of its potential returns per unit of risk. Regency Centers is currently generating about -0.02 per unit of risk. If you would invest 19,176 in Assurant on September 2, 2024 and sell it today you would earn a total of 3,534 from holding Assurant or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Regency Centers
Performance |
| Timeline |
| Assurant |
| Regency Centers |
Assurant and Regency Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Regency Centers
The main advantage of trading using opposite Assurant and Regency Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Regency Centers 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 Regency Centers will offset losses from the drop in Regency Centers' long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Regency Centers vs. Teleflex Incorporated | Regency Centers vs. Bank of New | Regency Centers vs. Stepstone Group | Regency Centers vs. Cardinal Health |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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