Correlation Between Siriuspoint and ICC Holdings
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and ICC Holdings 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 ICC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and ICC Holdings, you can compare the effects of market volatilities on Siriuspoint and ICC Holdings 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 ICC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and ICC Holdings.
Diversification Opportunities for Siriuspoint and ICC Holdings
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siriuspoint and ICC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and ICC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICC 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 ICC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICC Holdings has no effect on the direction of Siriuspoint i.e., Siriuspoint and ICC Holdings go up and down completely randomly.
Pair Corralation between Siriuspoint and ICC Holdings
Given the investment horizon of 90 days Siriuspoint is expected to generate 12.09 times less return on investment than ICC Holdings. But when comparing it to its historical volatility, Siriuspoint is 25.04 times less risky than ICC Holdings. It trades about 0.1 of its potential returns per unit of risk. ICC Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,525 in ICC Holdings on August 23, 2024 and sell it today you would earn a total of 782.01 from holding ICC Holdings or generate 51.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.68% |
| Values | Daily Returns |
Siriuspoint vs. ICC Holdings
Performance |
| Timeline |
| Siriuspoint |
| ICC Holdings |
Siriuspoint and ICC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and ICC Holdings
The main advantage of trading using opposite Siriuspoint and ICC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, ICC Holdings 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 ICC Holdings will offset losses from the drop in ICC Holdings' long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |