Correlation Between Assured Guaranty and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both Assured Guaranty and Corsair Gaming 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 Assured Guaranty and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assured Guaranty and Corsair Gaming, you can compare the effects of market volatilities on Assured Guaranty and Corsair Gaming 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 Assured Guaranty with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assured Guaranty and Corsair Gaming.
Diversification Opportunities for Assured Guaranty and Corsair Gaming
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assured and Corsair is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Assured Guaranty and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and Assured Guaranty 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 Assured Guaranty are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Assured Guaranty i.e., Assured Guaranty and Corsair Gaming go up and down completely randomly.
Pair Corralation between Assured Guaranty and Corsair Gaming
Assuming the 90 days horizon Assured Guaranty is expected to generate 1.83 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, Assured Guaranty is 1.27 times less risky than Corsair Gaming. It trades about 0.04 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 634.00 in Corsair Gaming on October 9, 2024 and sell it today you would earn a total of 44.00 from holding Corsair Gaming or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assured Guaranty vs. Corsair Gaming
Performance |
| Timeline |
| Assured Guaranty |
| Corsair Gaming |
Assured Guaranty and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assured Guaranty and Corsair Gaming
The main advantage of trading using opposite Assured Guaranty and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assured Guaranty position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| Assured Guaranty vs. BJs Restaurants | Assured Guaranty vs. Charter Communications | Assured Guaranty vs. NEWELL RUBBERMAID | Assured Guaranty vs. Computershare Limited |
| Corsair Gaming vs. WIMFARM SA EO | Corsair Gaming vs. Molson Coors Beverage | Corsair Gaming vs. Federal Agricultural Mortgage | Corsair Gaming vs. Titan Machinery |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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