Correlation Between AMERISAFE and Assurant
Can any of the company-specific risk be diversified away by investing in both AMERISAFE 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 AMERISAFE and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMERISAFE and Assurant, you can compare the effects of market volatilities on AMERISAFE 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 AMERISAFE with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERISAFE and Assurant.
Diversification Opportunities for AMERISAFE and Assurant
Pay attention - limited upside
The 3 months correlation between AMERISAFE and Assurant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMERISAFE and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and AMERISAFE 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 AMERISAFE 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 AMERISAFE i.e., AMERISAFE and Assurant go up and down completely randomly.
Pair Corralation between AMERISAFE and Assurant
Given the investment horizon of 90 days AMERISAFE is expected to under-perform the Assurant. But the stock apears to be less risky and, when comparing its historical volatility, AMERISAFE is 1.23 times less risky than Assurant. The stock trades about -0.15 of its potential returns per unit of risk. The Assurant is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 20,893 in Assurant on March 31, 2025 and sell it today you would lose (1,209) from holding Assurant or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMERISAFE vs. Assurant
Performance |
| Timeline |
| AMERISAFE |
| Assurant |
AMERISAFE and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERISAFE and Assurant
The main advantage of trading using opposite AMERISAFE and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERISAFE 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.| AMERISAFE vs. Assured Guaranty | AMERISAFE vs. MBIA Inc | AMERISAFE vs. Enact Holdings | AMERISAFE vs. James River Group |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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