Correlation Between Oxbridge and SiriusPoint
Can any of the company-specific risk be diversified away by investing in both Oxbridge 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 Oxbridge and SiriusPoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxbridge Re Holdings and SiriusPoint, you can compare the effects of market volatilities on Oxbridge 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 Oxbridge with a short position of SiriusPoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxbridge and SiriusPoint.
Diversification Opportunities for Oxbridge and SiriusPoint
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oxbridge and SiriusPoint is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oxbridge Re Holdings and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint and Oxbridge 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 Oxbridge Re 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 Oxbridge i.e., Oxbridge and SiriusPoint go up and down completely randomly.
Pair Corralation between Oxbridge and SiriusPoint
Given the investment horizon of 90 days Oxbridge Re Holdings is expected to generate 23.89 times more return on investment than SiriusPoint. However, Oxbridge is 23.89 times more volatile than SiriusPoint. It trades about 0.19 of its potential returns per unit of risk. SiriusPoint is currently generating about 0.05 per unit of risk. If you would invest 385.00 in Oxbridge Re Holdings on November 9, 2024 and sell it today you would earn a total of 83.00 from holding Oxbridge Re Holdings or generate 21.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oxbridge Re Holdings vs. SiriusPoint
Performance |
| Timeline |
| Oxbridge Re Holdings |
| SiriusPoint |
Oxbridge and SiriusPoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxbridge and SiriusPoint
The main advantage of trading using opposite Oxbridge and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxbridge 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.| Oxbridge vs. Muenchener Rueckver Ges | Oxbridge vs. Greenlight Capital Re | Oxbridge vs. Maiden Holdings | Oxbridge vs. Swiss Re |
| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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