Correlation Between SiriusPoint and Modiv
Can any of the company-specific risk be diversified away by investing in both SiriusPoint and Modiv 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 Modiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiriusPoint and Modiv Inc, you can compare the effects of market volatilities on SiriusPoint and Modiv 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 Modiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiriusPoint and Modiv.
Diversification Opportunities for SiriusPoint and Modiv
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SiriusPoint and Modiv is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SiriusPoint and Modiv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Modiv Inc 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 Modiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Modiv Inc has no effect on the direction of SiriusPoint i.e., SiriusPoint and Modiv go up and down completely randomly.
Pair Corralation between SiriusPoint and Modiv
Assuming the 90 days trading horizon SiriusPoint is expected to generate 0.43 times more return on investment than Modiv. However, SiriusPoint is 2.33 times less risky than Modiv. It trades about 0.12 of its potential returns per unit of risk. Modiv Inc is currently generating about 0.05 per unit of risk. If you would invest 2,447 in SiriusPoint on October 26, 2024 and sell it today you would earn a total of 112.00 from holding SiriusPoint or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiriusPoint vs. Modiv Inc
Performance |
| Timeline |
| SiriusPoint |
| Modiv Inc |
SiriusPoint and Modiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiriusPoint and Modiv
The main advantage of trading using opposite SiriusPoint and Modiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiriusPoint position performs unexpectedly, Modiv 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 Modiv will offset losses from the drop in Modiv's long position.| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage |
| Modiv vs. SiriusPoint | Modiv vs. RLJ Lodging Trust | Modiv vs. ARMOUR Residential REIT | Modiv vs. Sachem Capital Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |