Correlation Between Positive Physicians and Assurant

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Can any of the company-specific risk be diversified away by investing in both Positive Physicians 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 Positive Physicians and Assurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Positive Physicians Holdings and Assurant, you can compare the effects of market volatilities on Positive Physicians 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 Positive Physicians with a short position of Assurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Positive Physicians and Assurant.

Diversification Opportunities for Positive Physicians and Assurant

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between Positive and Assurant is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Positive Physicians Holdings and Assurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assurant and Positive Physicians 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 Positive Physicians Holdings 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 Positive Physicians i.e., Positive Physicians and Assurant go up and down completely randomly.

Pair Corralation between Positive Physicians and Assurant

Given the investment horizon of 90 days Positive Physicians Holdings is expected to generate 4.6 times more return on investment than Assurant. However, Positive Physicians is 4.6 times more volatile than Assurant. It trades about 0.02 of its potential returns per unit of risk. Assurant is currently generating about 0.0 per unit of risk. If you would invest  915.00  in Positive Physicians Holdings on June 30, 2022 and sell it today you would lose (275.00)  from holding Positive Physicians Holdings or give up 30.05% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Positive Physicians Holdings  vs.  Assurant

 Performance (%) 
       Timeline  
Positive Physicians 
Positive Performance
0 of 100
Over the last 90 days Positive Physicians Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Positive Price Channel

Assurant 
Assurant Performance
0 of 100
Over the last 90 days Assurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Assurant Price Channel

Positive Physicians and Assurant Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Positive Physicians and Assurant

The main advantage of trading using opposite Positive Physicians and Assurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Positive Physicians 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.
Positive Physicians vs. Clearwater Paper Corp
The idea behind Positive Physicians Holdings 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.
Assurant vs. Clearwater Paper Corp
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 Transaction History module to view history of all your transactions and understand their impact on performance.

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