Correlation Between IShares Core and Assurant
Can any of the company-specific risk be diversified away by investing in both IShares Core 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 IShares Core and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Core SP and Assurant, you can compare the effects of market volatilities on IShares Core 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 IShares Core with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Core and Assurant.
Diversification Opportunities for IShares Core and Assurant
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IShares and Assurant is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and IShares Core 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 iShares Core SP 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 IShares Core i.e., IShares Core and Assurant go up and down completely randomly.
Pair Corralation between IShares Core and Assurant
Considering the 90-day investment horizon IShares Core is expected to generate 1.02 times less return on investment than Assurant. But when comparing it to its historical volatility, iShares Core SP is 1.85 times less risky than Assurant. It trades about 0.14 of its potential returns per unit of risk. Assurant is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 21,279 in Assurant on August 13, 2025 and sell it today you would earn a total of 1,273 from holding Assurant or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Core SP vs. Assurant
Performance |
| Timeline |
| iShares Core SP |
| Assurant |
IShares Core and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Core and Assurant
The main advantage of trading using opposite IShares Core and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Core 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.| IShares Core vs. SPDR SP 500 | IShares Core vs. iShares Core SP | IShares Core vs. iShares Core SP | IShares Core vs. Vanguard Total International |
| Assurant vs. American Financial Group | Assurant vs. Globe Life | Assurant vs. Invesco Plc | Assurant vs. Old Republic International |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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