Correlation Between Siriuspoint and Chongqing Rural
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Chongqing Rural 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 Chongqing Rural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Chongqing Rural Commercial, you can compare the effects of market volatilities on Siriuspoint and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Chongqing Rural.
Diversification Opportunities for Siriuspoint and Chongqing Rural
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siriuspoint and Chongqing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Siriuspoint i.e., Siriuspoint and Chongqing Rural go up and down completely randomly.
Pair Corralation between Siriuspoint and Chongqing Rural
Given the investment horizon of 90 days Siriuspoint is expected to generate 3.59 times less return on investment than Chongqing Rural. But when comparing it to its historical volatility, Siriuspoint is 3.42 times less risky than Chongqing Rural. It trades about 0.07 of its potential returns per unit of risk. Chongqing Rural Commercial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,811 in Chongqing Rural Commercial on September 22, 2024 and sell it today you would earn a total of 897.00 from holding Chongqing Rural Commercial or generate 49.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Chongqing Rural Commercial
Performance |
| Timeline |
| Siriuspoint |
| Chongqing Rural Comm |
Siriuspoint and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Chongqing Rural
The main advantage of trading using opposite Siriuspoint and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural's long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| Chongqing Rural vs. Ross Stores | Chongqing Rural vs. Siriuspoint | Chongqing Rural vs. Duluth Holdings | Chongqing Rural vs. Chiba Bank Ltd |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |