Correlation Between Consol Energy and Fidelis Insurance
Can any of the company-specific risk be diversified away by investing in both Consol Energy and Fidelis Insurance 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 Consol Energy and Fidelis Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consol Energy and Fidelis Insurance Holdings, you can compare the effects of market volatilities on Consol Energy and Fidelis Insurance 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 Consol Energy with a short position of Fidelis Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consol Energy and Fidelis Insurance.
Diversification Opportunities for Consol Energy and Fidelis Insurance
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Consol and Fidelis is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Consol Energy and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance and Consol Energy 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 Consol Energy are associated (or correlated) with Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of Consol Energy i.e., Consol Energy and Fidelis Insurance go up and down completely randomly.
Pair Corralation between Consol Energy and Fidelis Insurance
Given the investment horizon of 90 days Consol Energy is expected to under-perform the Fidelis Insurance. In addition to that, Consol Energy is 1.95 times more volatile than Fidelis Insurance Holdings. It trades about -0.12 of its total potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about -0.13 per unit of volatility. If you would invest 1,993 in Fidelis Insurance Holdings on September 14, 2024 and sell it today you would lose (58.00) from holding Fidelis Insurance Holdings or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consol Energy vs. Fidelis Insurance Holdings
Performance |
| Timeline |
| Consol Energy |
| Fidelis Insurance |
Consol Energy and Fidelis Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consol Energy and Fidelis Insurance
The main advantage of trading using opposite Consol Energy and Fidelis Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consol Energy position performs unexpectedly, Fidelis Insurance 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 Fidelis Insurance will offset losses from the drop in Fidelis Insurance's long position.| Consol Energy vs. Alliance Resource Partners | Consol Energy vs. Natural Resource Partners | Consol Energy vs. Hallador Energy | Consol Energy vs. NACCO Industries |
| Fidelis Insurance vs. Enstar Group Limited | Fidelis Insurance vs. Aegon NV ADR | Fidelis Insurance vs. American International Group | Fidelis Insurance vs. Axa Equitable Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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