Correlation Between PUBLIC and Assurant
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By analyzing existing cross correlation between PUBLIC SVC O and Assurant, you can compare the effects of market volatilities on PUBLIC 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 PUBLIC with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC and Assurant.
Diversification Opportunities for PUBLIC and Assurant
Good diversification
The 3 months correlation between PUBLIC and Assurant is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC SVC O and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and PUBLIC 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 PUBLIC SVC O 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 PUBLIC i.e., PUBLIC and Assurant go up and down completely randomly.
Pair Corralation between PUBLIC and Assurant
Assuming the 90 days trading horizon PUBLIC SVC O is expected to under-perform the Assurant. But the bond apears to be less risky and, when comparing its historical volatility, PUBLIC SVC O is 1.99 times less risky than Assurant. The bond trades about -0.17 of its potential returns per unit of risk. The Assurant is currently generating about 0.54 of returns per unit of risk over similar time horizon. If you would invest 19,119 in Assurant on September 3, 2024 and sell it today you would earn a total of 3,591 from holding Assurant or generate 18.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.0% |
| Values | Daily Returns |
PUBLIC SVC O vs. Assurant
Performance |
| Timeline |
| PUBLIC SVC O |
| Assurant |
PUBLIC and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC and Assurant
The main advantage of trading using opposite PUBLIC and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC 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 PUBLIC SVC O 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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