Correlation Between Siriuspoint and HNI Corp
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and HNI 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 HNI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and HNI Corp, you can compare the effects of market volatilities on Siriuspoint and HNI 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 HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and HNI Corp.
Diversification Opportunities for Siriuspoint and HNI Corp
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siriuspoint and HNI is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp 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 HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of Siriuspoint i.e., Siriuspoint and HNI Corp go up and down completely randomly.
Pair Corralation between Siriuspoint and HNI Corp
Given the investment horizon of 90 days Siriuspoint is expected to generate 1.24 times less return on investment than HNI Corp. In addition to that, Siriuspoint is 1.09 times more volatile than HNI Corp. It trades about 0.09 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.12 per unit of volatility. If you would invest 3,296 in HNI Corp on August 25, 2024 and sell it today you would earn a total of 2,321 from holding HNI Corp or generate 70.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. HNI Corp
Performance |
| Timeline |
| Siriuspoint |
| HNI Corp |
Siriuspoint and HNI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and HNI Corp
The main advantage of trading using opposite Siriuspoint and HNI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, HNI 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 HNI Corp will offset losses from the drop in HNI Corp's long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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