Correlation Between Colas SA and SiriusPoint
Can any of the company-specific risk be diversified away by investing in both Colas SA 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 Colas SA and SiriusPoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colas SA and SiriusPoint, you can compare the effects of market volatilities on Colas SA 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 Colas SA with a short position of SiriusPoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colas SA and SiriusPoint.
Diversification Opportunities for Colas SA and SiriusPoint
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Colas and SiriusPoint is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Colas SA and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint and Colas SA 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 Colas SA 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 Colas SA i.e., Colas SA and SiriusPoint go up and down completely randomly.
Pair Corralation between Colas SA and SiriusPoint
If you would invest 2,423 in SiriusPoint on August 24, 2024 and sell it today you would earn a total of 108.00 from holding SiriusPoint or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Colas SA vs. SiriusPoint
Performance |
| Timeline |
| Colas SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SiriusPoint |
Colas SA and SiriusPoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colas SA and SiriusPoint
The main advantage of trading using opposite Colas SA and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colas SA 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.| Colas SA vs. Reinsurance Group of | Colas SA vs. Siriuspoint | Colas SA vs. RenaissanceRe Holdings | Colas SA vs. Maiden Holdings |
| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage | SiriusPoint vs. Aquagold 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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