Correlation Between Siriuspoint and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Aspen Insurance 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 Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Aspen Insurance Holdings, you can compare the effects of market volatilities on Siriuspoint and Aspen Insurance 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 Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Aspen Insurance.
Diversification Opportunities for Siriuspoint and Aspen Insurance
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siriuspoint and Aspen is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings 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 Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of Siriuspoint i.e., Siriuspoint and Aspen Insurance go up and down completely randomly.
Pair Corralation between Siriuspoint and Aspen Insurance
Given the investment horizon of 90 days Siriuspoint is expected to generate 4.3 times more return on investment than Aspen Insurance. However, Siriuspoint is 4.3 times more volatile than Aspen Insurance Holdings. It trades about 0.25 of its potential returns per unit of risk. Aspen Insurance Holdings is currently generating about -0.22 per unit of risk. If you would invest 1,359 in Siriuspoint on August 28, 2024 and sell it today you would earn a total of 201.00 from holding Siriuspoint or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Siriuspoint vs. Aspen Insurance Holdings
Performance |
| Timeline |
| Siriuspoint |
| Aspen Insurance Holdings |
Siriuspoint and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Aspen Insurance
The main advantage of trading using opposite Siriuspoint and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Aspen Insurance 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| Aspen Insurance vs. The Allstate | Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. AmTrust Financial Services | Aspen Insurance vs. Argo Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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