Correlation Between 718549AB4 and Aspen Insurance
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By analyzing existing cross correlation between Phillips 66 Partners and Aspen Insurance Holdings, you can compare the effects of market volatilities on 718549AB4 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 718549AB4 with a short position of Aspen Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 718549AB4 and Aspen Insurance.
Diversification Opportunities for 718549AB4 and Aspen Insurance
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between 718549AB4 and Aspen is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Phillips 66 Partners 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 718549AB4 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 Phillips 66 Partners 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 718549AB4 i.e., 718549AB4 and Aspen Insurance go up and down completely randomly.
Pair Corralation between 718549AB4 and Aspen Insurance
Assuming the 90 days trading horizon Phillips 66 Partners is expected to under-perform the Aspen Insurance. But the bond apears to be less risky and, when comparing its historical volatility, Phillips 66 Partners is 1.36 times less risky than Aspen Insurance. The bond trades about 0.0 of its potential returns per unit of risk. The Aspen Insurance Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Aspen Insurance Holdings on September 3, 2024 and sell it today you would earn a total of 506.00 from holding Aspen Insurance Holdings or generate 29.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.15% |
| Values | Daily Returns |
Phillips 66 Partners vs. Aspen Insurance Holdings
Performance |
| Timeline |
| Phillips 66 Partners |
| Aspen Insurance Holdings |
718549AB4 and Aspen Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 718549AB4 and Aspen Insurance
The main advantage of trading using opposite 718549AB4 and Aspen Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 718549AB4 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.| 718549AB4 vs. Aspen Insurance Holdings | 718549AB4 vs. Canlan Ice Sports | 718549AB4 vs. Marine Products | 718549AB4 vs. Trupanion |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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