Correlation Between Stewart Information and ProAssurance
Can any of the company-specific risk be diversified away by investing in both Stewart Information and ProAssurance 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 Stewart Information and ProAssurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stewart Information Services and ProAssurance, you can compare the effects of market volatilities on Stewart Information and ProAssurance 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 Stewart Information with a short position of ProAssurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stewart Information and ProAssurance.
Diversification Opportunities for Stewart Information and ProAssurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stewart and ProAssurance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Stewart Information Services and ProAssurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProAssurance and Stewart Information 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 Stewart Information Services are associated (or correlated) with ProAssurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProAssurance has no effect on the direction of Stewart Information i.e., Stewart Information and ProAssurance go up and down completely randomly.
Pair Corralation between Stewart Information and ProAssurance
Considering the 90-day investment horizon Stewart Information is expected to generate 1.29 times less return on investment than ProAssurance. But when comparing it to its historical volatility, Stewart Information Services is 1.76 times less risky than ProAssurance. It trades about 0.28 of its potential returns per unit of risk. ProAssurance is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,503 in ProAssurance on August 31, 2024 and sell it today you would earn a total of 170.00 from holding ProAssurance or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stewart Information Services vs. ProAssurance
Performance |
| Timeline |
| Stewart Information |
| ProAssurance |
Stewart Information and ProAssurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stewart Information and ProAssurance
The main advantage of trading using opposite Stewart Information and ProAssurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stewart Information position performs unexpectedly, ProAssurance 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 ProAssurance will offset losses from the drop in ProAssurance's long position.| Stewart Information vs. Selective Insurance Group | Stewart Information vs. Kemper | Stewart Information vs. Donegal Group B | Stewart Information vs. Argo Group International |
| ProAssurance vs. Progressive Corp | ProAssurance vs. Chubb | ProAssurance vs. The Allstate | ProAssurance vs. Selective Insurance Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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