Correlation Between Ryan Specialty and James River

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

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

Diversification Opportunities for Ryan Specialty and James River

-0.14

Correlation Coefficient

Ryan Specialty  James River

Good diversification

The 3 months correlation between Ryan and James is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ryan Specialty Group and James River Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James River Group and Ryan Specialty 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 Ryan Specialty Group are associated (or correlated) with James River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James River Group has no effect on the direction of Ryan Specialty i.e., Ryan Specialty and James River go up and down completely randomly.

Pair Corralation between Ryan Specialty and James River

Given the investment horizon of 90 days Ryan Specialty Group is expected to under-perform the James River. But the stock apears to be less risky and, when comparing its historical volatility, Ryan Specialty Group is 1.56 times less risky than James River. The stock trades about -0.14 of its potential returns per unit of risk. The James River Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  481.00  in James River Group on May 6, 2025 and sell it today you would earn a total of  71.00  from holding James River Group or generate 14.76% return on investment over 90 days.

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

Ryan Specialty Group  vs.  James River Group

Ryan Specialty Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ryan Specialty Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

James River Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in James River Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, James River reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ryan Specialty and James River

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

The idea behind Ryan Specialty Group and James River Group 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.