Correlation Between Fidelis Insurance and Hartford Financial
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and Hartford Financial 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 Hartford Financial 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 Hartford Financial Services, you can compare the effects of market volatilities on Fidelis Insurance and Hartford Financial 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 Hartford Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Hartford Financial.
Diversification Opportunities for Fidelis Insurance and Hartford Financial
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelis and Hartford is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Hartford Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Financial 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 Hartford Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Financial has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Hartford Financial go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Hartford Financial
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 1.65 times more return on investment than Hartford Financial. However, Fidelis Insurance is 1.65 times more volatile than Hartford Financial Services. It trades about 0.34 of its potential returns per unit of risk. Hartford Financial Services is currently generating about 0.24 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. Hartford Financial Services
Performance |
| Timeline |
| Fidelis Insurance |
| Hartford Financial |
Fidelis Insurance and Hartford Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Hartford Financial
The main advantage of trading using opposite Fidelis Insurance and Hartford Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, Hartford Financial 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 Hartford Financial will offset losses from the drop in Hartford Financial'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 |
| Hartford Financial vs. Goosehead Insurance | Hartford Financial vs. International General Insurance | Hartford Financial vs. Enstar Group Limited | Hartford Financial vs. Arch Capital Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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