Correlation Between Swiss Re and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Swiss Re and Siriuspoint 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 Swiss Re and Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Re and Siriuspoint, you can compare the effects of market volatilities on Swiss Re and Siriuspoint 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 Swiss Re with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Re and Siriuspoint.
Diversification Opportunities for Swiss Re and Siriuspoint
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Swiss and Siriuspoint is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Re and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and Swiss Re 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 Swiss Re are associated (or correlated) with Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Swiss Re i.e., Swiss Re and Siriuspoint go up and down completely randomly.
Pair Corralation between Swiss Re and Siriuspoint
Assuming the 90 days horizon Swiss Re is expected to generate 1.07 times less return on investment than Siriuspoint. But when comparing it to its historical volatility, Swiss Re is 1.27 times less risky than Siriuspoint. It trades about 0.39 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,314 in Siriuspoint on September 4, 2024 and sell it today you would earn a total of 238.00 from holding Siriuspoint or generate 18.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Re vs. Siriuspoint
Performance |
| Timeline |
| Swiss Re |
| Siriuspoint |
Swiss Re and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Re and Siriuspoint
The main advantage of trading using opposite Swiss Re and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Re position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Swiss Re vs. Western Asset Global | Swiss Re vs. Invesco Trust For | Swiss Re vs. Logan Ridge Finance | Swiss Re vs. Invesco Advantage MIT |
| Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. SCOR PK | Siriuspoint vs. Aquagold International | Siriuspoint vs. Thrivent High Yield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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