Correlation Between Skillful Craftsman and Assurant
Can any of the company-specific risk be diversified away by investing in both Skillful Craftsman and Assurant 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 Skillful Craftsman and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skillful Craftsman Education and Assurant, you can compare the effects of market volatilities on Skillful Craftsman and Assurant 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 Skillful Craftsman with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skillful Craftsman and Assurant.
Diversification Opportunities for Skillful Craftsman and Assurant
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Skillful and Assurant is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Skillful Craftsman Education and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Skillful Craftsman 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 Skillful Craftsman Education are associated (or correlated) with Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of Skillful Craftsman i.e., Skillful Craftsman and Assurant go up and down completely randomly.
Pair Corralation between Skillful Craftsman and Assurant
Given the investment horizon of 90 days Skillful Craftsman is expected to generate 2.91 times less return on investment than Assurant. In addition to that, Skillful Craftsman is 2.72 times more volatile than Assurant. It trades about 0.01 of its total potential returns per unit of risk. Assurant is currently generating about 0.09 per unit of volatility. If you would invest 12,620 in Assurant on September 3, 2024 and sell it today you would earn a total of 9,953 from holding Assurant or generate 78.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skillful Craftsman Education vs. Assurant
Performance |
| Timeline |
| Skillful Craftsman |
| Assurant |
Skillful Craftsman and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skillful Craftsman and Assurant
The main advantage of trading using opposite Skillful Craftsman and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skillful Craftsman position performs unexpectedly, Assurant 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 Assurant will offset losses from the drop in Assurant's long position.| Skillful Craftsman vs. Wah Fu Education | Skillful Craftsman vs. Golden Sun Education | Skillful Craftsman vs. Elite Education Group | Skillful Craftsman vs. QuantaSing Group Limited |
| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
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.
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