Correlation Between Assurant and Enact Holdings

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

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

Diversification Opportunities for Assurant and Enact Holdings

0.65

Correlation Coefficient

Assurant  Enact Holdings

Poor diversification

The 3 months correlation between Assurant and Enact is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Enact Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enact Holdings and Assurant 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 Assurant are associated (or correlated) with Enact Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enact Holdings has no effect on the direction of Assurant i.e., Assurant and Enact Holdings go up and down completely randomly.

Pair Corralation between Assurant and Enact Holdings

Considering the 90-day investment horizon Assurant is expected to generate 1.18 times more return on investment than Enact Holdings. However, Assurant is 1.18 times more volatile than Enact Holdings. It trades about -0.03 of its potential returns per unit of risk. Enact Holdings is currently generating about -0.29 per unit of risk. If you would invest  21,119  in Assurant on July 23, 2025 and sell it today you would lose (204.00) from holding Assurant or give up 0.97% of portfolio value over 90 days.

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

Assurant  vs.  Enact Holdings

Assurant

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Assurant are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent forward indicators, Assurant may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Enact Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enact Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Enact Holdings is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Assurant and Enact Holdings

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

The idea behind Assurant and Enact Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.