Correlation Between Siriuspoint and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Siriuspoint and Reinsurance Group 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 Reinsurance Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siriuspoint and Reinsurance Group of, you can compare the effects of market volatilities on Siriuspoint and Reinsurance Group 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siriuspoint and Reinsurance Group.
Diversification Opportunities for Siriuspoint and Reinsurance Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siriuspoint and Reinsurance is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Siriuspoint and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Siriuspoint i.e., Siriuspoint and Reinsurance Group go up and down completely randomly.
Pair Corralation between Siriuspoint and Reinsurance Group
Given the investment horizon of 90 days Siriuspoint is expected to generate 1.3 times more return on investment than Reinsurance Group. However, Siriuspoint is 1.3 times more volatile than Reinsurance Group of. It trades about 0.1 of its potential returns per unit of risk. Reinsurance Group of is currently generating about 0.08 per unit of risk. If you would invest 656.00 in Siriuspoint on August 24, 2024 and sell it today you would earn a total of 881.00 from holding Siriuspoint or generate 134.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siriuspoint vs. Reinsurance Group of
Performance |
| Timeline |
| Siriuspoint |
| Reinsurance Group |
Siriuspoint and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siriuspoint and Reinsurance Group
The main advantage of trading using opposite Siriuspoint and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siriuspoint position performs unexpectedly, Reinsurance Group 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
| Reinsurance Group vs. Maiden Holdings | Reinsurance Group vs. Greenlight Capital Re | Reinsurance Group vs. RenaissanceRe Holdings | Reinsurance Group vs. Renaissancere Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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