Correlation Between ICC Holdings and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and Siriuspoint 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 ICC Holdings and Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and Siriuspoint, you can compare the effects of market volatilities on ICC Holdings and Siriuspoint 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 ICC Holdings with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and Siriuspoint.
Diversification Opportunities for ICC Holdings and Siriuspoint
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between ICC and Siriuspoint is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and ICC Holdings 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 ICC Holdings are associated (or correlated) with Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of ICC Holdings i.e., ICC Holdings and Siriuspoint go up and down completely randomly.
Pair Corralation between ICC Holdings and Siriuspoint
Given the investment horizon of 90 days ICC Holdings is expected to generate 25.05 times more return on investment than Siriuspoint. However, ICC Holdings is 25.05 times more volatile than Siriuspoint. It trades about 0.05 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.1 per unit of risk. If you would invest 1,563 in ICC Holdings on August 27, 2024 and sell it today you would earn a total of 761.00 from holding ICC Holdings or generate 48.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.68% |
| Values | Daily Returns |
ICC Holdings vs. Siriuspoint
Performance |
| Timeline |
| ICC Holdings |
| Siriuspoint |
ICC Holdings and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and Siriuspoint
The main advantage of trading using opposite ICC Holdings and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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