Correlation Between Ryan Specialty and AXIS Capital
Can any of the company-specific risk be diversified away by investing in both Ryan Specialty and AXIS Capital 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 Ryan Specialty and AXIS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ryan Specialty Group and AXIS Capital Holdings, you can compare the effects of market volatilities on Ryan Specialty and AXIS Capital 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 Ryan Specialty with a short position of AXIS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ryan Specialty and AXIS Capital.
Diversification Opportunities for Ryan Specialty and AXIS Capital
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ryan and AXIS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ryan Specialty Group and AXIS Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIS Capital Holdings and Ryan Specialty 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 Ryan Specialty Group are associated (or correlated) with AXIS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIS Capital Holdings has no effect on the direction of Ryan Specialty i.e., Ryan Specialty and AXIS Capital go up and down completely randomly.
Pair Corralation between Ryan Specialty and AXIS Capital
Given the investment horizon of 90 days Ryan Specialty is expected to generate 1.32 times less return on investment than AXIS Capital. But when comparing it to its historical volatility, Ryan Specialty Group is 1.38 times less risky than AXIS Capital. It trades about 0.55 of its potential returns per unit of risk. AXIS Capital Holdings is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 7,904 in AXIS Capital Holdings on September 2, 2024 and sell it today you would earn a total of 1,400 from holding AXIS Capital Holdings or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ryan Specialty Group vs. AXIS Capital Holdings
Performance |
| Timeline |
| Ryan Specialty Group |
| AXIS Capital Holdings |
Ryan Specialty and AXIS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ryan Specialty and AXIS Capital
The main advantage of trading using opposite Ryan Specialty and AXIS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryan Specialty position performs unexpectedly, AXIS Capital 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 AXIS Capital will offset losses from the drop in AXIS Capital's long position.| Ryan Specialty vs. Core Main | Ryan Specialty vs. Hayward Holdings | Ryan Specialty vs. Paycor HCM | Ryan Specialty vs. Stevanato Group SpA |
| AXIS Capital vs. Employers Holdings | AXIS Capital vs. AMERISAFE | AXIS Capital vs. NMI Holdings | AXIS Capital vs. Investors Title |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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