Correlation Between Assurant and Enact Holdings
Can any of the company-specific risk be diversified away by investing in both Assurant and Enact Holdings 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 Assurant and Enact Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Enact Holdings, you can compare the effects of market volatilities on Assurant and Enact Holdings 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 Assurant with a short position of Enact Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Enact Holdings.
Diversification Opportunities for Assurant and Enact Holdings
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assurant and Enact is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Enact Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enact Holdings and Assurant 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 Assurant are associated (or correlated) with Enact Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enact Holdings has no effect on the direction of Assurant i.e., Assurant and Enact Holdings go up and down completely randomly.
Pair Corralation between Assurant and Enact Holdings
Considering the 90-day investment horizon Assurant is expected to generate 1.72 times less return on investment than Enact Holdings. In addition to that, Assurant is 1.42 times more volatile than Enact Holdings. It trades about 0.06 of its total potential returns per unit of risk. Enact Holdings is currently generating about 0.15 per unit of volatility. If you would invest 3,406 in Enact Holdings on June 9, 2025 and sell it today you would earn a total of 451.00 from holding Enact Holdings or generate 13.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Enact Holdings
Performance |
| Timeline |
| Assurant |
| Enact Holdings |
Assurant and Enact Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Enact Holdings
The main advantage of trading using opposite Assurant and Enact Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Enact Holdings 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 Enact Holdings will offset losses from the drop in Enact Holdings' long position.| Assurant vs. Enact Holdings | Assurant vs. Assured Guaranty | Assurant vs. Allegion PLC | Assurant vs. Ameriprise Financial |
| Enact Holdings vs. Ambac Financial Group | Enact Holdings vs. AMERISAFE | Enact Holdings vs. Assured Guaranty | Enact Holdings vs. Essent 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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