Correlation Between ProAssurance and Argo Group
Can any of the company-specific risk be diversified away by investing in both ProAssurance and Argo Group 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 ProAssurance and Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProAssurance and Argo Group International, you can compare the effects of market volatilities on ProAssurance and Argo Group 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 ProAssurance with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProAssurance and Argo Group.
Diversification Opportunities for ProAssurance and Argo Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ProAssurance and Argo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ProAssurance and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International and ProAssurance 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 ProAssurance are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of ProAssurance i.e., ProAssurance and Argo Group go up and down completely randomly.
Pair Corralation between ProAssurance and Argo Group
If you would invest 1,280 in ProAssurance on August 24, 2024 and sell it today you would earn a total of 375.00 from holding ProAssurance or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
ProAssurance vs. Argo Group International
Performance |
| Timeline |
| ProAssurance |
| Argo Group International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ProAssurance and Argo Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProAssurance and Argo Group
The main advantage of trading using opposite ProAssurance and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProAssurance position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.| ProAssurance vs. Amtech Systems | ProAssurance vs. Gold Fields Ltd | ProAssurance vs. Aegean Airlines SA | ProAssurance vs. Merck Company |
| Argo Group vs. Selective Insurance Group | Argo Group vs. Kemper | Argo Group vs. Donegal Group B | Argo Group vs. Argo Group International |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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