Correlation Between SiriusPoint and Fortress Transportation
Can any of the company-specific risk be diversified away by investing in both SiriusPoint and Fortress Transportation 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 SiriusPoint and Fortress Transportation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiriusPoint and Fortress Transportation and, you can compare the effects of market volatilities on SiriusPoint and Fortress Transportation 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 SiriusPoint with a short position of Fortress Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiriusPoint and Fortress Transportation.
Diversification Opportunities for SiriusPoint and Fortress Transportation
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SiriusPoint and Fortress is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding SiriusPoint and Fortress Transportation and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transportation and SiriusPoint 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 SiriusPoint are associated (or correlated) with Fortress Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transportation has no effect on the direction of SiriusPoint i.e., SiriusPoint and Fortress Transportation go up and down completely randomly.
Pair Corralation between SiriusPoint and Fortress Transportation
Assuming the 90 days trading horizon SiriusPoint is expected to generate 1.82 times less return on investment than Fortress Transportation. But when comparing it to its historical volatility, SiriusPoint is 2.84 times less risky than Fortress Transportation. It trades about 0.15 of its potential returns per unit of risk. Fortress Transportation and is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,413 in Fortress Transportation and on August 24, 2024 and sell it today you would earn a total of 193.00 from holding Fortress Transportation and or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiriusPoint vs. Fortress Transportation and
Performance |
| Timeline |
| SiriusPoint |
| Fortress Transportation |
SiriusPoint and Fortress Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiriusPoint and Fortress Transportation
The main advantage of trading using opposite SiriusPoint and Fortress Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiriusPoint position performs unexpectedly, Fortress Transportation 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 Fortress Transportation will offset losses from the drop in Fortress Transportation's long position.| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage | SiriusPoint vs. Aquagold International |
| Fortress Transportation vs. Fortress Transportation and | Fortress Transportation vs. SiriusPoint | Fortress Transportation vs. New York Mortgage | Fortress Transportation vs. Compass Diversified |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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