Correlation Between Fidelis Insurance and WK Kellogg
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and WK Kellogg 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 WK Kellogg 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 WK Kellogg Co, you can compare the effects of market volatilities on Fidelis Insurance and WK Kellogg 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 WK Kellogg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and WK Kellogg.
Diversification Opportunities for Fidelis Insurance and WK Kellogg
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelis and KLG is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and WK Kellogg Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WK Kellogg 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 WK Kellogg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WK Kellogg has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and WK Kellogg go up and down completely randomly.
Pair Corralation between Fidelis Insurance and WK Kellogg
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to generate 0.6 times more return on investment than WK Kellogg. However, Fidelis Insurance Holdings is 1.66 times less risky than WK Kellogg. It trades about 0.01 of its potential returns per unit of risk. WK Kellogg Co is currently generating about 0.01 per unit of risk. If you would invest 1,637 in Fidelis Insurance Holdings on November 3, 2024 and sell it today you would earn a total of 13.00 from holding Fidelis Insurance Holdings or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelis Insurance Holdings vs. WK Kellogg Co
Performance |
| Timeline |
| Fidelis Insurance |
| WK Kellogg |
Fidelis Insurance and WK Kellogg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and WK Kellogg
The main advantage of trading using opposite Fidelis Insurance and WK Kellogg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, WK Kellogg 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 WK Kellogg will offset losses from the drop in WK Kellogg's long position.| Fidelis Insurance vs. National CineMedia | Fidelis Insurance vs. Anterix | Fidelis Insurance vs. Iridium Communications | Fidelis Insurance vs. Playtika Holding Corp |
| WK Kellogg vs. Amkor Technology | WK Kellogg vs. SohuCom | WK Kellogg vs. GMS Inc | WK Kellogg vs. Evolution Gaming 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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