Correlation Between Trupanion and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Trupanion 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 Trupanion and Siriuspoint into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trupanion and Siriuspoint, you can compare the effects of market volatilities on Trupanion 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 Trupanion with a short position of Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trupanion and Siriuspoint.
Diversification Opportunities for Trupanion and Siriuspoint
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trupanion and Siriuspoint is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Trupanion and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint and Trupanion 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 Trupanion 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 Trupanion i.e., Trupanion and Siriuspoint go up and down completely randomly.
Pair Corralation between Trupanion and Siriuspoint
Given the investment horizon of 90 days Trupanion is expected to generate 1.46 times more return on investment than Siriuspoint. However, Trupanion is 1.46 times more volatile than Siriuspoint. It trades about 0.09 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.05 per unit of risk. If you would invest 4,655 in Trupanion on August 28, 2024 and sell it today you would earn a total of 691.00 from holding Trupanion or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trupanion vs. Siriuspoint
Performance |
| Timeline |
| Trupanion |
| Siriuspoint |
Trupanion and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trupanion and Siriuspoint
The main advantage of trading using opposite Trupanion and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trupanion 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.| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment Corp |
| Siriuspoint vs. Maiden Holdings | Siriuspoint vs. Reinsurance Group of | Siriuspoint vs. Oxbridge Re Holdings | Siriuspoint vs. Greenlight Capital Re |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |