Correlation Between Tower One and Assurant
Can any of the company-specific risk be diversified away by investing in both Tower One and Assurant 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 Tower One and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower One Wireless and Assurant, you can compare the effects of market volatilities on Tower One and Assurant 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 Tower One with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower One and Assurant.
Diversification Opportunities for Tower One and Assurant
Pay attention - limited upside
The 3 months correlation between Tower and Assurant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tower One Wireless and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Tower One 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 Tower One Wireless are associated (or correlated) with Assurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assurant has no effect on the direction of Tower One i.e., Tower One and Assurant go up and down completely randomly.
Pair Corralation between Tower One and Assurant
If you would invest 19,176 in Assurant on September 2, 2024 and sell it today you would earn a total of 3,534 from holding Assurant or generate 18.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tower One Wireless vs. Assurant
Performance |
| Timeline |
| Tower One Wireless |
| Assurant |
Tower One and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tower One and Assurant
The main advantage of trading using opposite Tower One and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower One position performs unexpectedly, Assurant 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 Assurant will offset losses from the drop in Assurant's long position.The idea behind Tower One Wireless and Assurant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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