Correlation Between Aequi Acquisition and Selective Insurance
Can any of the company-specific risk be diversified away by investing in both Aequi Acquisition and Selective Insurance 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 Aequi Acquisition and Selective Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aequi Acquisition Corp and Selective Insurance Group, you can compare the effects of market volatilities on Aequi Acquisition and Selective Insurance 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 Aequi Acquisition with a short position of Selective Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aequi Acquisition and Selective Insurance.
Diversification Opportunities for Aequi Acquisition and Selective Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aequi and Selective is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aequi Acquisition Corp and Selective Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selective Insurance and Aequi Acquisition 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 Aequi Acquisition Corp are associated (or correlated) with Selective Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selective Insurance has no effect on the direction of Aequi Acquisition i.e., Aequi Acquisition and Selective Insurance go up and down completely randomly.
Pair Corralation between Aequi Acquisition and Selective Insurance
If you would invest 9,317 in Selective Insurance Group on October 24, 2024 and sell it today you would earn a total of 158.00 from holding Selective Insurance Group or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Aequi Acquisition Corp vs. Selective Insurance Group
Performance |
| Timeline |
| Aequi Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Selective Insurance |
Aequi Acquisition and Selective Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aequi Acquisition and Selective Insurance
The main advantage of trading using opposite Aequi Acquisition and Selective Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aequi Acquisition position performs unexpectedly, Selective Insurance 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 Selective Insurance will offset losses from the drop in Selective Insurance's long position.| Aequi Acquisition vs. Northstar Clean Technologies | Aequi Acquisition vs. Siriuspoint | Aequi Acquisition vs. Verde Clean Fuels | Aequi Acquisition vs. Cheche Group Class |
| Selective Insurance vs. Kemper | Selective Insurance vs. Donegal Group B | Selective Insurance vs. Argo Group International | Selective Insurance vs. Global Indemnity PLC |
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
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |