Correlation Between Trisura and AMERISAFE

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

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

Diversification Opportunities for Trisura and AMERISAFE

-0.74

Correlation Coefficient

Trisura  AMERISAFE

Pay attention - limited upside

The 3 months correlation between Trisura and AMERISAFE is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Trisura Group and AMERISAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERISAFE and Trisura 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 Trisura Group are associated (or correlated) with AMERISAFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERISAFE has no effect on the direction of Trisura i.e., Trisura and AMERISAFE go up and down completely randomly.

Pair Corralation between Trisura and AMERISAFE

Assuming the 90 days horizon Trisura Group is expected to generate 0.96 times more return on investment than AMERISAFE. However, Trisura Group is 1.04 times less risky than AMERISAFE. It trades about 0.13 of its potential returns per unit of risk. AMERISAFE is currently generating about -0.05 per unit of risk. If you would invest  2,710  in Trisura Group on May 5, 2025 and sell it today you would earn a total of  303.00  from holding Trisura Group or generate 11.18% return on investment over 90 days.

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

Trisura Group  vs.  AMERISAFE

Trisura Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trisura Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Trisura may actually be approaching a critical reversion point that can send shares even higher in September 2025.

AMERISAFE

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMERISAFE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AMERISAFE is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Trisura and AMERISAFE

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

The idea behind Trisura Group and AMERISAFE 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.