Correlation Between Horace Mann and Argo Group
Can any of the company-specific risk be diversified away by investing in both Horace Mann 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 Horace Mann and Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horace Mann Educators and Argo Group International, you can compare the effects of market volatilities on Horace Mann 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 Horace Mann with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horace Mann and Argo Group.
Diversification Opportunities for Horace Mann and Argo Group
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Horace and Argo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Horace Mann Educators 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 Horace Mann 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 Horace Mann Educators 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 Horace Mann i.e., Horace Mann and Argo Group go up and down completely randomly.
Pair Corralation between Horace Mann and Argo Group
Considering the 90-day investment horizon Horace Mann Educators is expected to generate 3.93 times more return on investment than Argo Group. However, Horace Mann is 3.93 times more volatile than Argo Group International. It trades about 0.05 of its potential returns per unit of risk. Argo Group International is currently generating about 0.12 per unit of risk. If you would invest 3,397 in Horace Mann Educators on December 16, 2024 and sell it today you would earn a total of 797.00 from holding Horace Mann Educators or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Horace Mann Educators vs. Argo Group International
Performance |
| Timeline |
| Horace Mann Educators |
| Argo Group International |
Horace Mann and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Horace Mann and Argo Group
The main advantage of trading using opposite Horace Mann and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horace Mann 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.| Horace Mann vs. Kemper | ||
| Horace Mann vs. RLI Corp | ||
| Horace Mann vs. Global Indemnity PLC | ||
| Horace Mann vs. Argo Group International |
| Argo Group vs. Iridium Communications | ||
| Argo Group vs. LB Foster | ||
| Argo Group vs. BCE Inc | ||
| Argo Group vs. Broadleaf Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |