Correlation Between Aspen Insurance and PICC Property

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

By analyzing existing cross correlation between Aspen Insurance Holdings and PICC Property And, you can compare the effects of market volatilities on Aspen Insurance and PICC Property 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 Aspen Insurance with a short position of PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Insurance and PICC Property.

Diversification Opportunities for Aspen Insurance and PICC Property

0.0

Correlation Coefficient

Aspen Insurance  PICC Property

Pay attention - limited upside

The 3 months correlation between Aspen and PICC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Insurance Holdings and PICC Property And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property And and Aspen Insurance 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 Aspen Insurance Holdings are associated (or correlated) with PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property And has no effect on the direction of Aspen Insurance i.e., Aspen Insurance and PICC Property go up and down completely randomly.

Pair Corralation between Aspen Insurance and PICC Property

If you would invest  1,980  in Aspen Insurance Holdings on December 28, 2024 and sell it today you would earn a total of  32.00  from holding Aspen Insurance Holdings or generate 1.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aspen Insurance Holdings  vs.  PICC Property And

Aspen Insurance Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aspen Insurance Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound essential indicators, Aspen Insurance is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

PICC Property And

Risk-Adjusted Performance

Very Weak

Over the last 90 days PICC Property And has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, PICC Property is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Aspen Insurance and PICC Property

The main advantage of trading using opposite Aspen Insurance and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Insurance position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.

The idea behind Aspen Insurance Holdings and PICC Property And 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.