Correlation Between Siriuspoint and Ameren Illinois
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Ameren Illinois 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 Ameren Illinois into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Ameren Illinois, you can compare the effects of market volatilities on Siriuspoint and Ameren Illinois 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 Ameren Illinois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Ameren Illinois.
Diversification Opportunities for Siriuspoint and Ameren Illinois
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siriuspoint and Ameren is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Ameren Illinois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameren Illinois 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 Ameren Illinois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameren Illinois has no effect on the direction of Siriuspoint i.e., Siriuspoint and Ameren Illinois go up and down completely randomly.
Pair Corralation between Siriuspoint and Ameren Illinois
Given the investment horizon of 90 days Siriuspoint is expected to generate 0.87 times more return on investment than Ameren Illinois. However, Siriuspoint is 1.15 times less risky than Ameren Illinois. It trades about 0.36 of its potential returns per unit of risk. Ameren Illinois is currently generating about -0.03 per unit of risk. If you would invest 1,432 in Siriuspoint on September 12, 2024 and sell it today you would earn a total of 133.00 from holding Siriuspoint or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Ameren Illinois
Performance |
| Timeline |
| Siriuspoint |
| Ameren Illinois |
Siriuspoint and Ameren Illinois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Ameren Illinois
The main advantage of trading using opposite Siriuspoint and Ameren Illinois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Ameren Illinois 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 Ameren Illinois will offset losses from the drop in Ameren Illinois' long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| Ameren Illinois vs. Avient Corp | Ameren Illinois vs. Discover Financial Services | Ameren Illinois vs. Pintec Technology Holdings | Ameren Illinois vs. LithiumBank Resources 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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