Correlation Between Positive Physicians and Ambac Financial
Can any of the company-specific risk be diversified away by investing in both Positive Physicians and Ambac Financial 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 Positive Physicians and Ambac Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Positive Physicians Holdings and Ambac Financial Group, you can compare the effects of market volatilities on Positive Physicians and Ambac Financial 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 Positive Physicians with a short position of Ambac Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Positive Physicians and Ambac Financial.
Diversification Opportunities for Positive Physicians and Ambac Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Positive and Ambac is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Positive Physicians Holdings and Ambac Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambac Financial Group and Positive Physicians 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 Positive Physicians Holdings are associated (or correlated) with Ambac Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambac Financial Group has no effect on the direction of Positive Physicians i.e., Positive Physicians and Ambac Financial go up and down completely randomly.
Pair Corralation between Positive Physicians and Ambac Financial
If you would invest 700.00 in Positive Physicians Holdings on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Positive Physicians Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Positive Physicians Holdings vs. Ambac Financial Group
Performance |
| Timeline |
| Positive Physicians |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ambac Financial Group |
Positive Physicians and Ambac Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Positive Physicians and Ambac Financial
The main advantage of trading using opposite Positive Physicians and Ambac Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Positive Physicians position performs unexpectedly, Ambac Financial 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 Ambac Financial will offset losses from the drop in Ambac Financial's long position.| Positive Physicians vs. Ambac Financial Group | Positive Physicians vs. AMERISAFE | Positive Physicians vs. Assured Guaranty | Positive Physicians vs. Essent Group |
| Ambac Financial vs. Employers Holdings | Ambac Financial vs. James River Group | Ambac Financial vs. Assured Guaranty | Ambac Financial vs. ICC 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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