Correlation Between Chubb and Argo Group
Can any of the company-specific risk be diversified away by investing in both Chubb and Argo Group 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 Chubb and Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chubb and Argo Group International, you can compare the effects of market volatilities on Chubb and Argo Group 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 Chubb with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chubb and Argo Group.
Diversification Opportunities for Chubb and Argo Group
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chubb and Argo is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chubb and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International and Chubb 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 Chubb are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Chubb i.e., Chubb and Argo Group go up and down completely randomly.
Pair Corralation between Chubb and Argo Group
Allowing for the 90-day total investment horizon Chubb is expected to under-perform the Argo Group. In addition to that, Chubb is 11.28 times more volatile than Argo Group International. It trades about -0.07 of its total potential returns per unit of risk. Argo Group International is currently generating about 0.19 per unit of volatility. If you would invest 2,508 in Argo Group International on November 18, 2024 and sell it today you would earn a total of 10.00 from holding Argo Group International or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chubb vs. Argo Group International
Performance |
| Timeline |
| Chubb |
| Argo Group International |
Chubb and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chubb and Argo Group
The main advantage of trading using opposite Chubb and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chubb position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| Chubb vs. Cincinnati Financial | Chubb vs. Aflac Incorporated | Chubb vs. Dover | Chubb vs. Franklin Resources |
| Argo Group vs. ArcelorMittal SA ADR | Argo Group vs. Molecular Partners AG | Argo Group vs. Tianjin Capital Environmental | Argo Group vs. Tarsus Pharmaceuticals |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |