Correlation Between Ambac Financial and Positive Physicians
Can any of the company-specific risk be diversified away by investing in both Ambac Financial and Positive Physicians 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 Ambac Financial and Positive Physicians into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambac Financial Group and Positive Physicians Holdings, you can compare the effects of market volatilities on Ambac Financial and Positive Physicians 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 Ambac Financial with a short position of Positive Physicians. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambac Financial and Positive Physicians.
Diversification Opportunities for Ambac Financial and Positive Physicians
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ambac and Positive is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ambac Financial Group and Positive Physicians Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Positive Physicians and Ambac Financial 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 Ambac Financial Group are associated (or correlated) with Positive Physicians. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Positive Physicians has no effect on the direction of Ambac Financial i.e., Ambac Financial and Positive Physicians go up and down completely randomly.
Pair Corralation between Ambac Financial and Positive Physicians
If you would invest 1,150 in Ambac Financial Group on August 24, 2024 and sell it today you would earn a total of 81.00 from holding Ambac Financial Group or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Ambac Financial Group vs. Positive Physicians Holdings
Performance |
| Timeline |
| Ambac Financial Group |
| Positive Physicians |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ambac Financial and Positive Physicians Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambac Financial and Positive Physicians
The main advantage of trading using opposite Ambac Financial and Positive Physicians positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambac Financial position performs unexpectedly, Positive Physicians 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 Positive Physicians will offset losses from the drop in Positive Physicians' long position.| Ambac Financial vs. Employers Holdings | Ambac Financial vs. James River Group | Ambac Financial vs. Assured Guaranty | Ambac Financial vs. ICC Holdings |
| Positive Physicians vs. Ambac Financial Group | Positive Physicians vs. AMERISAFE | Positive Physicians vs. Assured Guaranty | Positive Physicians vs. Essent 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |