Correlation Between Assurant and NWIDE
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By analyzing existing cross correlation between Assurant and NWIDE 485 27 JUL 27, you can compare the effects of market volatilities on Assurant and NWIDE 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 NWIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and NWIDE.
Diversification Opportunities for Assurant and NWIDE
Modest diversification
The 3 months correlation between Assurant and NWIDE is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and NWIDE 485 27 JUL 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NWIDE 485 27 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 NWIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NWIDE 485 27 has no effect on the direction of Assurant i.e., Assurant and NWIDE go up and down completely randomly.
Pair Corralation between Assurant and NWIDE
Considering the 90-day investment horizon Assurant is expected to generate 3.02 times more return on investment than NWIDE. However, Assurant is 3.02 times more volatile than NWIDE 485 27 JUL 27. It trades about 0.13 of its potential returns per unit of risk. NWIDE 485 27 JUL 27 is currently generating about 0.35 per unit of risk. If you would invest 21,153 in Assurant on September 13, 2024 and sell it today you would earn a total of 609.00 from holding Assurant or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Assurant vs. NWIDE 485 27 JUL 27
Performance |
| Timeline |
| Assurant |
| NWIDE 485 27 |
Assurant and NWIDE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and NWIDE
The main advantage of trading using opposite Assurant and NWIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, NWIDE 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 NWIDE will offset losses from the drop in NWIDE's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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