Correlation Between FG Financial and AXIS Capital

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

FG Financial Group  vs.  AXIS Capital Holdings

 Performance 
       Timeline  
FG Financial Group 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days FG Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, FG Financial is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
AXIS Capital Holdings 

Risk-Adjusted Performance

16 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in AXIS Capital Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, AXIS Capital unveiled solid returns over the last few months and may actually be approaching a breakup point.

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.
The idea behind FG Financial Group and AXIS Capital Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

FinTech Suite
Use AI to screen and filter profitable investment opportunities
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Stocks Directory
Find actively traded stocks across global markets
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume