Correlation Between SPORTING and SIRIUSPOINT

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

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

Diversification Opportunities for SPORTING and SIRIUSPOINT

0.27

Correlation Coefficient

SPORTING  SIRIUSPOINT

Modest diversification

The 3 months correlation between SPORTING and SIRIUSPOINT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING 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 SPORTING 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 SPORTING 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 SPORTING i.e., SPORTING and SIRIUSPOINT go up and down completely randomly.

Pair Corralation between SPORTING and SIRIUSPOINT

Assuming the 90 days trading horizon SPORTING is expected to generate 2.86 times less return on investment than SIRIUSPOINT. In addition to that, SPORTING is 1.02 times more volatile than SIRIUSPOINT LTD DL 10. It trades about 0.02 of its total potential returns per unit of risk. SIRIUSPOINT LTD DL 10 is currently generating about 0.06 per unit of volatility. If you would invest  830.00  in SIRIUSPOINT LTD DL 10 on April 18, 2025 and sell it today you would earn a total of  750.00  from holding SIRIUSPOINT LTD DL 10 or generate 90.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

SPORTING  vs.  SIRIUSPOINT LTD DL 10

SPORTING

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPORTING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, SPORTING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 8 (%) 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 SPORTING and SIRIUSPOINT

The main advantage of trading using opposite SPORTING and SIRIUSPOINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPORTING 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 SPORTING 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.