Correlation Between Amicorp FS and Hiscox

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

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

Diversification Opportunities for Amicorp FS and Hiscox

0.73

Correlation Coefficient

Amicorp FS  Hiscox

Poor diversification

The 3 months correlation between Amicorp and Hiscox is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Amicorp FS PLC and Hiscox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiscox and Amicorp FS 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 Amicorp FS PLC are associated (or correlated) with Hiscox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiscox has no effect on the direction of Amicorp FS i.e., Amicorp FS and Hiscox go up and down completely randomly.

Pair Corralation between Amicorp FS and Hiscox

Assuming the 90 days trading horizon Amicorp FS is expected to generate 2.75 times less return on investment than Hiscox. But when comparing it to its historical volatility, Amicorp FS PLC is 3.36 times less risky than Hiscox. It trades about 0.16 of its potential returns per unit of risk. Hiscox is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  114,855  in Hiscox on April 22, 2025 and sell it today you would earn a total of  13,745  from holding Hiscox or generate 11.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Amicorp FS PLC  vs.  Hiscox

Amicorp FS PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amicorp FS PLC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Amicorp FS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hiscox

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hiscox are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Hiscox may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Amicorp FS and Hiscox

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

The idea behind Amicorp FS PLC and Hiscox 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.