Correlation Between Fidelis Insurance and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and Fundamental Global 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 Fundamental Global 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 Fundamental Global, you can compare the effects of market volatilities on Fidelis Insurance and Fundamental Global 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 Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Fundamental Global.
Diversification Opportunities for Fidelis Insurance and Fundamental Global
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelis and Fundamental is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global 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 Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Fundamental Global go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Fundamental Global
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 16.67 times more return on investment than Fundamental Global. However, Fidelis Insurance is 16.67 times more volatile than Fundamental Global. It trades about 0.06 of its potential returns per unit of risk. Fundamental Global is currently generating about 0.05 per unit of risk. If you would invest 0.00 in Fidelis Insurance Holdings on August 31, 2024 and sell it today you would earn a total of 2,053 from holding Fidelis Insurance Holdings or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.78% |
| Values | Daily Returns |
Fidelis Insurance Holdings vs. Fundamental Global
Performance |
| Timeline |
| Fidelis Insurance |
| Fundamental Global |
Fidelis Insurance and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Fundamental Global
The main advantage of trading using opposite Fidelis Insurance and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global's long position.| Fidelis Insurance vs. Sphere Entertainment Co | Fidelis Insurance vs. Sabre Corpo | Fidelis Insurance vs. Supercom | Fidelis Insurance vs. Space Communication |
| Fundamental Global vs. Arch Capital Group | Fundamental Global vs. The Allstate | Fundamental Global vs. Brighthouse Financial | Fundamental Global vs. Athene Holding |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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