Correlation Between Fidelis Insurance and Axa Equitable
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and Axa Equitable 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 Fidelis Insurance and Axa Equitable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelis Insurance Holdings and Axa Equitable Holdings, you can compare the effects of market volatilities on Fidelis Insurance and Axa Equitable 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 Fidelis Insurance with a short position of Axa Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Axa Equitable.
Diversification Opportunities for Fidelis Insurance and Axa Equitable
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelis and Axa is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Axa Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa Equitable Holdings and Fidelis Insurance 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 Fidelis Insurance Holdings are associated (or correlated) with Axa Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa Equitable Holdings has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Axa Equitable go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Axa Equitable
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 0.68 times more return on investment than Axa Equitable. However, Fidelis Insurance Holdings is 1.48 times less risky than Axa Equitable. It trades about 0.34 of its potential returns per unit of risk. Axa Equitable Holdings is currently generating about 0.11 per unit of risk. If you would invest 1,754 in Fidelis Insurance Holdings on August 27, 2024 and sell it today you would earn a total of 305.00 from holding Fidelis Insurance Holdings or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelis Insurance Holdings vs. Axa Equitable Holdings
Performance |
| Timeline |
| Fidelis Insurance |
| Axa Equitable Holdings |
Fidelis Insurance and Axa Equitable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Axa Equitable
The main advantage of trading using opposite Fidelis Insurance and Axa Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, Axa Equitable 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 Axa Equitable will offset losses from the drop in Axa Equitable's long position.| Fidelis Insurance vs. Enstar Group Limited | Fidelis Insurance vs. Aegon NV ADR | Fidelis Insurance vs. American International Group | Fidelis Insurance vs. Axa Equitable Holdings |
| Axa Equitable vs. American International Group | Axa Equitable vs. Arch Capital Group | Axa Equitable vs. Old Republic International | Axa Equitable vs. Sun Life Financial |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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