Correlation Between Assurant and 207597EH4
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By analyzing existing cross correlation between Assurant and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Assurant and 207597EH4 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 207597EH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and 207597EH4.
Diversification Opportunities for Assurant and 207597EH4
Good diversification
The 3 months correlation between Assurant and 207597EH4 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597EH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Assurant i.e., Assurant and 207597EH4 go up and down completely randomly.
Pair Corralation between Assurant and 207597EH4
Considering the 90-day investment horizon Assurant is expected to generate 1.0 times more return on investment than 207597EH4. However, Assurant is 1.0 times more volatile than CONNECTICUT LT PWR. It trades about 0.52 of its potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.03 per unit of risk. If you would invest 19,119 in Assurant on September 3, 2024 and sell it today you would earn a total of 3,454 from holding Assurant or generate 18.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.0% |
| Values | Daily Returns |
Assurant vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Assurant |
| CONNECTICUT LT PWR |
Assurant and 207597EH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and 207597EH4
The main advantage of trading using opposite Assurant and 207597EH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, 207597EH4 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 207597EH4 will offset losses from the drop in 207597EH4's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| 207597EH4 vs. AEP TEX INC | 207597EH4 vs. US BANK NATIONAL | 207597EH4 vs. MetLife | 207597EH4 vs. Jackson Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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