Correlation Between Perception Capital and Assurant
Can any of the company-specific risk be diversified away by investing in both Perception Capital 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 Perception Capital and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perception Capital Corp and Assurant, you can compare the effects of market volatilities on Perception Capital 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 Perception Capital with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perception Capital and Assurant.
Diversification Opportunities for Perception Capital and Assurant
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Perception and Assurant is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Perception Capital Corp and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Perception Capital 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 Perception Capital Corp 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 Perception Capital i.e., Perception Capital and Assurant go up and down completely randomly.
Pair Corralation between Perception Capital and Assurant
If you would invest 21,471 in Assurant on September 15, 2024 and sell it today you would earn a total of 312.00 from holding Assurant or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Perception Capital Corp vs. Assurant
Performance |
| Timeline |
| Perception Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Assurant |
Perception Capital and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perception Capital and Assurant
The main advantage of trading using opposite Perception Capital and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perception Capital 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.| Perception Capital vs. Saia Inc | Perception Capital vs. Afya | Perception Capital vs. Alchemy Investments Acquisition | Perception Capital vs. Yuexiu Transport Infrastructure |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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