Correlation Between SiriusPoint and Colas SA

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

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

Diversification Opportunities for SiriusPoint and Colas SA

0.0

Correlation Coefficient

SiriusPoint  Colas SA

Pay attention - limited upside

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

Pair Corralation between SiriusPoint and Colas SA

If you would invest  2,508  in SiriusPoint on December 30, 2024 and sell it today you would earn a total of  21.00  from holding SiriusPoint or generate 0.84% return on investment over 90 days.

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

SiriusPoint  vs.  Colas SA

SiriusPoint

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SiriusPoint are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, SiriusPoint is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Colas SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Colas SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Colas SA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SiriusPoint and Colas SA

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

The idea behind SiriusPoint and Colas SA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.