Correlation Between Sothebys and Assurant

Can any of the company-specific risk be diversified away by investing in both Sothebys 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 Sothebys and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sothebys 7375 percent and Assurant, you can compare the effects of market volatilities on Sothebys 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 Sothebys with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sothebys and Assurant.

Diversification Opportunities for Sothebys and Assurant

0.0

Correlation Coefficient

Sothebys  Assurant

Pay attention - limited upside

The 3 months correlation between Sothebys and Assurant is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sothebys 7375 percent and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Sothebys 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 Sothebys 7375 percent 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 Sothebys i.e., Sothebys and Assurant go up and down completely randomly.

Pair Corralation between Sothebys and Assurant

Assuming the 90 days trading horizon Sothebys 7375 percent is expected to under-perform the Assurant. In addition to that, Sothebys is 1.31 times more volatile than Assurant. It trades about -0.03 of its total potential returns per unit of risk. Assurant is currently generating about 0.1 per unit of volatility. If you would invest  19,924  in Assurant on September 27, 2024 and sell it today you would earn a total of  1,794  from holding Assurant or generate 9.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.94%
Values	Daily Returns

Sothebys 7375 percent  vs.  Assurant

Sothebys 7375 percent

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sothebys 7375 percent has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sothebys is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Assurant

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Assurant are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating forward indicators, Assurant may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Sothebys and Assurant

The main advantage of trading using opposite Sothebys and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sothebys 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.

The idea behind Sothebys 7375 percent and Assurant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.