Correlation Between AmTrust Financial and Prudential Financial
Can any of the company-specific risk be diversified away by investing in both AmTrust Financial and Prudential Financial 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 AmTrust Financial and Prudential Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmTrust Financial Services and Prudential Financial, you can compare the effects of market volatilities on AmTrust Financial and Prudential Financial 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 AmTrust Financial with a short position of Prudential Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmTrust Financial and Prudential Financial.
Diversification Opportunities for AmTrust Financial and Prudential Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AmTrust and Prudential is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AmTrust Financial Services and Prudential Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Financial and AmTrust Financial 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 AmTrust Financial Services are associated (or correlated) with Prudential Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Financial has no effect on the direction of AmTrust Financial i.e., AmTrust Financial and Prudential Financial go up and down completely randomly.
Pair Corralation between AmTrust Financial and Prudential Financial
If you would invest 10,354 in Prudential Financial on January 24, 2024 and sell it today you would earn a total of 793.00 from holding Prudential Financial or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AmTrust Financial Services vs. Prudential Financial
Performance |
| Timeline |
| AmTrust Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Prudential Financial |
AmTrust Financial and Prudential Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmTrust Financial and Prudential Financial
The main advantage of trading using opposite AmTrust Financial and Prudential Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmTrust Financial position performs unexpectedly, Prudential Financial 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 Prudential Financial will offset losses from the drop in Prudential Financial's long position.| AmTrust Financial vs. Transocean | AmTrust Financial vs. GMS Inc | AmTrust Financial vs. Shelf Drilling | AmTrust Financial vs. Seadrill Limited |
| Prudential Financial vs. Lincoln National | Prudential Financial vs. Aflac Incorporated | Prudential Financial vs. Brighthouse Financial | Prudential Financial vs. Unum Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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