Correlation Between Siriuspoint and AES Corp
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and AES Corp 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 AES Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and AES Corp Unit, you can compare the effects of market volatilities on Siriuspoint and AES Corp 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 AES Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and AES Corp.
Diversification Opportunities for Siriuspoint and AES Corp
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siriuspoint and AES is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and AES Corp Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AES Corp Unit 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 AES Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AES Corp Unit has no effect on the direction of Siriuspoint i.e., Siriuspoint and AES Corp go up and down completely randomly.
Pair Corralation between Siriuspoint and AES Corp
If you would invest 1,314 in Siriuspoint on September 5, 2024 and sell it today you would earn a total of 242.00 from holding Siriuspoint or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Siriuspoint vs. AES Corp Unit
Performance |
| Timeline |
| Siriuspoint |
| AES Corp Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Siriuspoint and AES Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and AES Corp
The main advantage of trading using opposite Siriuspoint and AES Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, AES Corp 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 AES Corp will offset losses from the drop in AES Corp's long position.| Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. SCOR PK | Siriuspoint vs. Aquagold International | Siriuspoint vs. Thrivent High Yield |
| AES Corp vs. Acumen Pharmaceuticals | AES Corp vs. Marchex | AES Corp vs. Tarsus Pharmaceuticals | AES Corp vs. Xunlei Ltd Adr |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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