Correlation Between Enstar Group and Ageas SA/NV
Can any of the company-specific risk be diversified away by investing in both Enstar Group and Ageas SA/NV 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 Enstar Group and Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enstar Group Limited and ageas SANV, you can compare the effects of market volatilities on Enstar Group and Ageas SA/NV 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 Enstar Group with a short position of Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enstar Group and Ageas SA/NV.
Diversification Opportunities for Enstar Group and Ageas SA/NV
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enstar and Ageas is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Enstar Group Limited and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and Enstar 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 Enstar Group Limited are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Enstar Group i.e., Enstar Group and Ageas SA/NV go up and down completely randomly.
Pair Corralation between Enstar Group and Ageas SA/NV
Given the investment horizon of 90 days Enstar Group Limited is expected to generate 0.21 times more return on investment than Ageas SA/NV. However, Enstar Group Limited is 4.75 times less risky than Ageas SA/NV. It trades about 0.03 of its potential returns per unit of risk. ageas SANV is currently generating about -0.09 per unit of risk. If you would invest 32,482 in Enstar Group Limited on August 27, 2024 and sell it today you would earn a total of 56.00 from holding Enstar Group Limited or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enstar Group Limited vs. ageas SANV
Performance |
| Timeline |
| Enstar Group Limited |
| Ageas SA/NV |
Enstar Group and Ageas SA/NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enstar Group and Ageas SA/NV
The main advantage of trading using opposite Enstar Group and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enstar Group position performs unexpectedly, Ageas SA/NV 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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.| Enstar Group vs. Global Indemnity PLC | Enstar Group vs. Erie Indemnity | Enstar Group vs. AMERISAFE | Enstar Group vs. Diamond Hill Investment |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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