Correlation Between Assurant and 03040WAP0
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By analyzing existing cross correlation between Assurant and US03040WAP05, you can compare the effects of market volatilities on Assurant and 03040WAP0 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 03040WAP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and 03040WAP0.
Diversification Opportunities for Assurant and 03040WAP0
Significant diversification
The 3 months correlation between Assurant and 03040WAP0 is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and US03040WAP05 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US03040WAP05 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 03040WAP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US03040WAP05 has no effect on the direction of Assurant i.e., Assurant and 03040WAP0 go up and down completely randomly.
Pair Corralation between Assurant and 03040WAP0
Considering the 90-day investment horizon Assurant is expected to generate 1.16 times more return on investment than 03040WAP0. However, Assurant is 1.16 times more volatile than US03040WAP05. It trades about 0.52 of its potential returns per unit of risk. US03040WAP05 is currently generating about 0.24 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 Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Assurant vs. US03040WAP05
Performance |
| Timeline |
| Assurant |
| US03040WAP05 |
Assurant and 03040WAP0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and 03040WAP0
The main advantage of trading using opposite Assurant and 03040WAP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, 03040WAP0 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 03040WAP0 will offset losses from the drop in 03040WAP0's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| 03040WAP0 vs. Sun Life Financial | 03040WAP0 vs. Employers Holdings | 03040WAP0 vs. Assurant | 03040WAP0 vs. Citizens |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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