Correlation Between Admiral Group and Siit Intermediate
Can any of the company-specific risk be diversified away by investing in both Admiral Group and Siit Intermediate 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 Admiral Group and Siit Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Admiral Group PLC and Siit Intermediate Duration, you can compare the effects of market volatilities on Admiral Group and Siit Intermediate 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 Admiral Group with a short position of Siit Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Admiral Group and Siit Intermediate.
Diversification Opportunities for Admiral Group and Siit Intermediate
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Admiral and Siit is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Admiral Group PLC and Siit Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Intermediate and Admiral Group 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 Admiral Group PLC are associated (or correlated) with Siit Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Intermediate has no effect on the direction of Admiral Group i.e., Admiral Group and Siit Intermediate go up and down completely randomly.
Pair Corralation between Admiral Group and Siit Intermediate
Assuming the 90 days horizon Admiral Group is expected to generate 5.57 times less return on investment than Siit Intermediate. In addition to that, Admiral Group is 4.75 times more volatile than Siit Intermediate Duration. It trades about 0.0 of its total potential returns per unit of risk. Siit Intermediate Duration is currently generating about 0.1 per unit of volatility. If you would invest 886.00 in Siit Intermediate Duration on September 4, 2024 and sell it today you would earn a total of 7.00 from holding Siit Intermediate Duration or generate 0.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.24% |
Values | Daily Returns |
Admiral Group PLC vs. Siit Intermediate Duration
Performance |
Timeline |
Admiral Group PLC |
Siit Intermediate |
Admiral Group and Siit Intermediate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Admiral Group and Siit Intermediate
The main advantage of trading using opposite Admiral Group and Siit Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Admiral Group position performs unexpectedly, Siit Intermediate 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 Siit Intermediate will offset losses from the drop in Siit Intermediate's long position.Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services | Admiral Group vs. AmTrust Financial Services |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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