Correlation Between PICC Property and SiriusPoint

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

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

Diversification Opportunities for PICC Property and SiriusPoint

0.81

Correlation Coefficient

PICC Property  SiriusPoint

Very poor diversification

The 3 months correlation between PICC and SiriusPoint is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and SiriusPoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiriusPoint and PICC Property 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 PICC Property and 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 has no effect on the direction of PICC Property i.e., PICC Property and SiriusPoint go up and down completely randomly.

Pair Corralation between PICC Property and SiriusPoint

Assuming the 90 days horizon PICC Property and is expected to generate 16.71 times more return on investment than SiriusPoint. However, PICC Property is 16.71 times more volatile than SiriusPoint. It trades about 0.12 of its potential returns per unit of risk. SiriusPoint is currently generating about 0.26 per unit of risk. If you would invest  4,727  in PICC Property and on June 29, 2025 and sell it today you would earn a total of  773.00  from holding PICC Property and or generate 16.35% return on investment over 90 days.

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

PICC Property and  vs.  SiriusPoint

PICC Property

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in PICC Property and are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, PICC Property showed solid returns over the last few months and may actually be approaching a breakup point.

SiriusPoint

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SiriusPoint are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, SiriusPoint is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with PICC Property and SiriusPoint

The main advantage of trading using opposite PICC Property and SiriusPoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property 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 PICC Property and and SiriusPoint 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.