Correlation Between Perceptive Capital and Assurant
Can any of the company-specific risk be diversified away by investing in both Perceptive 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 Perceptive Capital and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perceptive Capital Solutions and Assurant, you can compare the effects of market volatilities on Perceptive 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 Perceptive Capital with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perceptive Capital and Assurant.
Diversification Opportunities for Perceptive Capital and Assurant
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perceptive and Assurant is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Perceptive Capital Solutions and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Perceptive 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 Perceptive Capital Solutions 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 Perceptive Capital i.e., Perceptive Capital and Assurant go up and down completely randomly.
Pair Corralation between Perceptive Capital and Assurant
Given the investment horizon of 90 days Perceptive Capital Solutions is expected to generate 0.22 times more return on investment than Assurant. However, Perceptive Capital Solutions is 4.49 times less risky than Assurant. It trades about 0.25 of its potential returns per unit of risk. Assurant is currently generating about -0.23 per unit of risk. If you would invest 1,018 in Perceptive Capital Solutions on November 28, 2024 and sell it today you would earn a total of 10.00 from holding Perceptive Capital Solutions or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perceptive Capital Solutions vs. Assurant
Performance |
| Timeline |
| Perceptive Capital |
| Assurant |
Perceptive Capital and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perceptive Capital and Assurant
The main advantage of trading using opposite Perceptive Capital and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perceptive 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.| Perceptive Capital vs. Sonos Inc | Perceptive Capital vs. Allient | Perceptive Capital vs. Emerson Radio | Perceptive Capital vs. Codexis |
| Assurant vs. American Financial Group | Assurant vs. Aegon Funding | Assurant vs. American Financial Group | Assurant vs. American Financial Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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