Correlation Between Panache Beverage and Assurant
Can any of the company-specific risk be diversified away by investing in both Panache Beverage 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 Panache Beverage and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panache Beverage and Assurant, you can compare the effects of market volatilities on Panache Beverage 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 Panache Beverage with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panache Beverage and Assurant.
Diversification Opportunities for Panache Beverage and Assurant
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Panache and Assurant is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Panache Beverage and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Panache Beverage 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 Panache Beverage 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 Panache Beverage i.e., Panache Beverage and Assurant go up and down completely randomly.
Pair Corralation between Panache Beverage and Assurant
Given the investment horizon of 90 days Panache Beverage is expected to under-perform the Assurant. In addition to that, Panache Beverage is 8.95 times more volatile than Assurant. It trades about -0.13 of its total potential returns per unit of risk. Assurant is currently generating about -0.03 per unit of volatility. If you would invest 19,198 in Assurant on April 30, 2025 and sell it today you would lose (593.00) from holding Assurant or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Panache Beverage vs. Assurant
Performance |
| Timeline |
| Panache Beverage |
| Assurant |
Panache Beverage and Assurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panache Beverage and Assurant
The main advantage of trading using opposite Panache Beverage and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panache Beverage 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.| Panache Beverage vs. Hudson Technologies | Panache Beverage vs. Tesla Inc | Panache Beverage vs. Zoom Video Communications | Panache Beverage vs. Cars Inc |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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