Correlation Between Argo Group and SL Private
Can any of the company-specific risk be diversified away by investing in both Argo Group and SL Private 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 Argo Group and SL Private into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and SL Private Equity, you can compare the effects of market volatilities on Argo Group and SL Private 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 Argo Group with a short position of SL Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and SL Private.
Diversification Opportunities for Argo Group and SL Private
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Argo and SLPE is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and SL Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SL Private Equity and Argo Group 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 Argo Group Limited are associated (or correlated) with SL Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SL Private Equity has no effect on the direction of Argo Group i.e., Argo Group and SL Private go up and down completely randomly.
Pair Corralation between Argo Group and SL Private
Assuming the 90 days trading horizon Argo Group Limited is expected to generate 7.09 times more return on investment than SL Private. However, Argo Group is 7.09 times more volatile than SL Private Equity. It trades about 0.19 of its potential returns per unit of risk. SL Private Equity is currently generating about 0.05 per unit of risk. If you would invest 450.00 in Argo Group Limited on November 29, 2024 and sell it today you would earn a total of 75.00 from holding Argo Group Limited or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Argo Group Limited vs. SL Private Equity
Performance |
| Timeline |
| Argo Group Limited |
| SL Private Equity |
Argo Group and SL Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and SL Private
The main advantage of trading using opposite Argo Group and SL Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group position performs unexpectedly, SL Private 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 SL Private will offset losses from the drop in SL Private's long position.| Argo Group vs. Geely Automobile Holdings | Argo Group vs. Atalaya Mining | Argo Group vs. Bisichi Mining PLC | Argo Group vs. Empire Metals Limited |
| SL Private vs. Metals Exploration Plc | SL Private vs. Samsung Electronics Co | SL Private vs. International Biotechnology Trust | SL Private vs. Cornish Metals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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