Correlation Between Allstate and Assurant
Can any of the company-specific risk be diversified away by investing in both Allstate 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 Allstate and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Allstate and Assurant, you can compare the effects of market volatilities on Allstate 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 Allstate with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstate and Assurant.
Diversification Opportunities for Allstate and Assurant
Poor diversification
The 3 months correlation between Allstate and Assurant is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Allstate and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Allstate 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 The Allstate 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 Allstate i.e., Allstate and Assurant go up and down completely randomly.
Pair Corralation between Allstate and Assurant
Considering the 90-day investment horizon Allstate is expected to generate 88.21 times less return on investment than Assurant. But when comparing it to its historical volatility, The Allstate is 2.31 times less risky than Assurant. It trades about 0.01 of its potential returns per unit of risk. Assurant is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 18,813 in Assurant on June 6, 2025 and sell it today you would earn a total of 2,676 from holding Assurant or generate 14.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Allstate vs. Assurant
Performance |
| Timeline |
| Allstate |
| Assurant |
Allstate and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstate and Assurant
The main advantage of trading using opposite Allstate and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstate 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.| Allstate vs. Aflac Incorporated | Allstate vs. Chubb | Allstate vs. Cincinnati Financial | Allstate vs. Hartford Financial Services |
| Assurant vs. Enact Holdings | Assurant vs. Assured Guaranty | Assurant vs. Allegion PLC | Assurant vs. Ameriprise Financial |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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