Correlation Between AMALGAMATED FIN and SIRIUSPOINT

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

By analyzing existing cross correlation between AMALGAMATED FIN DL 01 and SIRIUSPOINT LTD DL 10, you can compare the effects of market volatilities on AMALGAMATED FIN and SIRIUSPOINT 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 AMALGAMATED FIN with a short position of SIRIUSPOINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMALGAMATED FIN and SIRIUSPOINT.

Diversification Opportunities for AMALGAMATED FIN and SIRIUSPOINT

0.0

Correlation Coefficient

AMALGAMATED FIN  SIRIUSPOINT

Pay attention - limited upside

The 3 months correlation between AMALGAMATED and SIRIUSPOINT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMALGAMATED FIN DL 01 and SIRIUSPOINT LTD DL 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIRIUSPOINT LTD DL and AMALGAMATED FIN 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 AMALGAMATED FIN DL 01 are associated (or correlated) with SIRIUSPOINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIRIUSPOINT LTD DL has no effect on the direction of AMALGAMATED FIN i.e., AMALGAMATED FIN and SIRIUSPOINT go up and down completely randomly.

Pair Corralation between AMALGAMATED FIN and SIRIUSPOINT

If you would invest  1,390  in SIRIUSPOINT LTD DL 10 on April 16, 2025 and sell it today you would earn a total of  150.00  from holding SIRIUSPOINT LTD DL 10 or generate 10.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

AMALGAMATED FIN DL 01  vs.  SIRIUSPOINT LTD DL 10

AMALGAMATED FIN DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMALGAMATED FIN DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, AMALGAMATED FIN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SIRIUSPOINT LTD DL

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SIRIUSPOINT LTD DL 10 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SIRIUSPOINT reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMALGAMATED FIN and SIRIUSPOINT

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

The idea behind AMALGAMATED FIN DL 01 and SIRIUSPOINT LTD DL 10 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.