Correlation Between FG Financial and AXIS Capital
Can any of the company-specific risk be diversified away by investing in both FG Financial and AXIS Capital 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 FG Financial and AXIS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FG Financial Group and AXIS Capital Holdings, you can compare the effects of market volatilities on FG Financial and AXIS Capital 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 FG Financial with a short position of AXIS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Financial and AXIS Capital.
Diversification Opportunities for FG Financial and AXIS Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIH and AXIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Financial Group and AXIS Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIS Capital Holdings and FG Financial 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 FG Financial Group are associated (or correlated) with AXIS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIS Capital Holdings has no effect on the direction of FG Financial i.e., FG Financial and AXIS Capital go up and down completely randomly.
Pair Corralation between FG Financial and AXIS Capital
If you would invest 5,343 in AXIS Capital Holdings on December 30, 2023 and sell it today you would earn a total of 1,159 from holding AXIS Capital Holdings or generate 21.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
FG Financial Group vs. AXIS Capital Holdings
Performance |
Timeline |
FG Financial Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
AXIS Capital Holdings |
FG Financial and AXIS Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FG Financial and AXIS Capital
The main advantage of trading using opposite FG Financial and AXIS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Financial position performs unexpectedly, AXIS Capital 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 AXIS Capital will offset losses from the drop in AXIS Capital's long position.FG Financial vs. Seche Environnement SA | FG Financial vs. SEI Investments | FG Financial vs. BlueScope Steel Limited | FG Financial vs. Kaiser Aluminum |
AXIS Capital vs. Old Republic International | AXIS Capital vs. Uber Technologies | AXIS Capital vs. Asure Software | AXIS Capital vs. ATHS |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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