Correlation Between Genuine Parts and SIRIUSPOINT

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

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

Diversification Opportunities for Genuine Parts and SIRIUSPOINT

0.53

Correlation Coefficient

Genuine Parts  SIRIUSPOINT

Very weak diversification

The 3 months correlation between Genuine and SIRIUSPOINT is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Genuine Parts 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 Genuine Parts 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 Genuine Parts 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 Genuine Parts i.e., Genuine Parts and SIRIUSPOINT go up and down completely randomly.

Pair Corralation between Genuine Parts and SIRIUSPOINT

Assuming the 90 days horizon Genuine Parts is expected to generate 1.25 times less return on investment than SIRIUSPOINT. But when comparing it to its historical volatility, Genuine Parts is 1.44 times less risky than SIRIUSPOINT. It trades about 0.11 of its potential returns per unit of risk. SIRIUSPOINT LTD DL 10 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,430  in SIRIUSPOINT LTD DL 10 on April 25, 2025 and sell it today you would earn a total of  190.00  from holding SIRIUSPOINT LTD DL 10 or generate 13.29% return on investment over 90 days.

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

Genuine Parts  vs.  SIRIUSPOINT LTD DL 10

Genuine Parts

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Genuine Parts are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genuine Parts may actually be approaching a critical reversion point that can send shares even higher in August 2025.

SIRIUSPOINT LTD DL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SIRIUSPOINT LTD DL 10 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SIRIUSPOINT reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Genuine Parts and SIRIUSPOINT

The main advantage of trading using opposite Genuine Parts and SIRIUSPOINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genuine Parts 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 Genuine Parts 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..