Correlation Between 51Talk Online and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both 51Talk Online and Aspen 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 51Talk Online and Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and Aspen Insurance Holdings, you can compare the effects of market volatilities on 51Talk Online and Aspen 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 51Talk Online with a short position of Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and Aspen Insurance.
Diversification Opportunities for 51Talk Online and Aspen Insurance
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between 51Talk and Aspen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings and 51Talk Online 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 51Talk Online Education are associated (or correlated) with Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of 51Talk Online i.e., 51Talk Online and Aspen Insurance go up and down completely randomly.
Pair Corralation between 51Talk Online and Aspen Insurance
Considering the 90-day investment horizon 51Talk Online Education is expected to generate 2.74 times more return on investment than Aspen Insurance. However, 51Talk Online is 2.74 times more volatile than Aspen Insurance Holdings. It trades about 0.06 of its potential returns per unit of risk. Aspen Insurance Holdings is currently generating about 0.04 per unit of risk. If you would invest 635.00 in 51Talk Online Education on September 3, 2024 and sell it today you would earn a total of 751.00 from holding 51Talk Online Education or generate 118.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. Aspen Insurance Holdings
Performance |
| Timeline |
| 51Talk Online Education |
| Aspen Insurance Holdings |
51Talk Online and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and Aspen Insurance
The main advantage of trading using opposite 51Talk Online and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online position performs unexpectedly, Aspen 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| 51Talk Online vs. Wah Fu Education | 51Talk Online vs. Four Seasons Education | 51Talk Online vs. Sunlands Technology Group | 51Talk Online vs. China Liberal Education |
| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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