Correlation Between Summa Silver and Aspen Insurance
Can any of the company-specific risk be diversified away by investing in both Summa Silver and Aspen Insurance 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 Summa Silver and Aspen Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summa Silver Corp and Aspen Insurance Holdings, you can compare the effects of market volatilities on Summa Silver and Aspen Insurance 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 Summa Silver with a short position of Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summa Silver and Aspen Insurance.
Diversification Opportunities for Summa Silver and Aspen Insurance
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Summa and Aspen is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Summa Silver Corp and Aspen Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspen Insurance Holdings and Summa Silver 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 Summa Silver Corp are associated (or correlated) with Aspen Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspen Insurance Holdings has no effect on the direction of Summa Silver i.e., Summa Silver and Aspen Insurance go up and down completely randomly.
Pair Corralation between Summa Silver and Aspen Insurance
Assuming the 90 days horizon Summa Silver Corp is expected to under-perform the Aspen Insurance. In addition to that, Summa Silver is 3.61 times more volatile than Aspen Insurance Holdings. It trades about -0.1 of its total potential returns per unit of risk. Aspen Insurance Holdings is currently generating about 0.1 per unit of volatility. If you would invest 1,901 in Aspen Insurance Holdings on August 28, 2024 and sell it today you would earn a total of 296.00 from holding Aspen Insurance Holdings or generate 15.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summa Silver Corp vs. Aspen Insurance Holdings
Performance |
| Timeline |
| Summa Silver Corp |
| Aspen Insurance Holdings |
Summa Silver and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summa Silver and Aspen Insurance
The main advantage of trading using opposite Summa Silver and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summa Silver position performs unexpectedly, Aspen Insurance 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 Aspen Insurance will offset losses from the drop in Aspen Insurance's long position.| Summa Silver vs. P2 Gold | Summa Silver vs. Enduro Metals | Summa Silver vs. Kodiak Copper Corp | Summa Silver vs. Mirasol Resources |
| Aspen Insurance vs. Aspen Insurance Holdings | Aspen Insurance vs. Selective Insurance Group | Aspen Insurance vs. The Allstate | Aspen Insurance vs. AmTrust Financial Services |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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