Correlation Between Horace Mann and Argo Group
Can any of the company-specific risk be diversified away by investing in both Horace Mann and Argo Group 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 Horace Mann and Argo Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Horace Mann Educators and Argo Group International, you can compare the effects of market volatilities on Horace Mann and Argo Group 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 Horace Mann with a short position of Argo Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Horace Mann and Argo Group.
Diversification Opportunities for Horace Mann and Argo Group
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Horace and Argo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Horace Mann Educators and Argo Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Group International and Horace Mann 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 Horace Mann Educators are associated (or correlated) with Argo Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Group International has no effect on the direction of Horace Mann i.e., Horace Mann and Argo Group go up and down completely randomly.
Pair Corralation between Horace Mann and Argo Group
If you would invest 2,999 in Argo Group International on March 14, 2024 and sell it today you would earn a total of 0.00 from holding Argo Group International or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.61% |
Values | Daily Returns |
Horace Mann Educators vs. Argo Group International
Performance |
Timeline |
Horace Mann Educators |
Argo Group International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Horace Mann and Argo Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Horace Mann and Argo Group
The main advantage of trading using opposite Horace Mann and Argo Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Horace Mann position performs unexpectedly, Argo Group 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 Argo Group will offset losses from the drop in Argo Group's long position.Horace Mann vs. Goosehead Insurance | Horace Mann vs. International General Insurance | Horace Mann vs. Enstar Group Limited | Horace Mann vs. Arch Capital Group |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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