Correlation Between Siriuspoint and Life Time
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Life Time 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 Life Time into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Life Time Group, you can compare the effects of market volatilities on Siriuspoint and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Life Time.
Diversification Opportunities for Siriuspoint and Life Time
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siriuspoint and Life is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Siriuspoint i.e., Siriuspoint and Life Time go up and down completely randomly.
Pair Corralation between Siriuspoint and Life Time
Given the investment horizon of 90 days Siriuspoint is expected to generate 1.55 times more return on investment than Life Time. However, Siriuspoint is 1.55 times more volatile than Life Time Group. It trades about 0.28 of its potential returns per unit of risk. Life Time Group is currently generating about 0.22 per unit of risk. If you would invest 1,335 in Siriuspoint on September 2, 2024 and sell it today you would earn a total of 207.00 from holding Siriuspoint or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siriuspoint vs. Life Time Group
Performance |
| Timeline |
| Siriuspoint |
| Life Time Group |
Siriuspoint and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Life Time
The main advantage of trading using opposite Siriuspoint and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time'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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |