Correlation Between Fidelis Insurance and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Fidelis Insurance and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Proficient Auto.
Diversification Opportunities for Fidelis Insurance and Proficient Auto
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelis and Proficient is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Proficient Auto go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Proficient Auto
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to under-perform the Proficient Auto. But the stock apears to be less risky and, when comparing its historical volatility, Fidelis Insurance Holdings is 1.82 times less risky than Proficient Auto. The stock trades about -0.2 of its potential returns per unit of risk. The Proficient Auto Logistics, is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 768.00 in Proficient Auto Logistics, on October 20, 2024 and sell it today you would earn a total of 254.00 from holding Proficient Auto Logistics, or generate 33.07% 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. Proficient Auto Logistics,
Performance |
| Timeline |
| Fidelis Insurance |
| Proficient Auto Logi |
Fidelis Insurance and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelis Insurance and Proficient Auto
The main advantage of trading using opposite Fidelis Insurance and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Fidelis Insurance vs. Energy and Environmental | Fidelis Insurance vs. Ubisoft Entertainment | Fidelis Insurance vs. Sphere Entertainment Co | Fidelis Insurance vs. Tianjin Capital Environmental |
| Proficient Auto vs. Empresa Distribuidora y | Proficient Auto vs. Park Electrochemical | Proficient Auto vs. Kinetik Holdings | Proficient Auto vs. CenterPoint Energy |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |