Correlation Between Assurant and Telecom
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By analyzing existing cross correlation between Assurant and Telecom Italia Capital, you can compare the effects of market volatilities on Assurant and Telecom 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 Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Telecom.
Diversification Opportunities for Assurant and Telecom
Excellent diversification
The 3 months correlation between Assurant and Telecom is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Telecom Italia Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecom Italia Capital 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 Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecom Italia Capital has no effect on the direction of Assurant i.e., Assurant and Telecom go up and down completely randomly.
Pair Corralation between Assurant and Telecom
Considering the 90-day investment horizon Assurant is expected to generate 0.35 times more return on investment than Telecom. However, Assurant is 2.9 times less risky than Telecom. It trades about 0.07 of its potential returns per unit of risk. Telecom Italia Capital is currently generating about -0.22 per unit of risk. If you would invest 21,471 in Assurant on September 15, 2024 and sell it today you would earn a total of 312.00 from holding Assurant or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Assurant vs. Telecom Italia Capital
Performance |
| Timeline |
| Assurant |
| Telecom Italia Capital |
Assurant and Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Telecom
The main advantage of trading using opposite Assurant and Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Telecom 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 Telecom will offset losses from the drop in Telecom's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Telecom vs. Fomento Economico Mexicano | Telecom vs. Assurant | Telecom vs. QBE Insurance Group | Telecom vs. United Fire Group |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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