Correlation Between FG Financial and Chubb
Can any of the company-specific risk be diversified away by investing in both FG Financial and Chubb 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 Chubb 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 Chubb, you can compare the effects of market volatilities on FG Financial and Chubb 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 Chubb. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Financial and Chubb.
Diversification Opportunities for FG Financial and Chubb
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIH and Chubb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Financial Group and Chubb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chubb 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 Chubb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chubb has no effect on the direction of FG Financial i.e., FG Financial and Chubb go up and down completely randomly.
Pair Corralation between FG Financial and Chubb
If you would invest 20,923 in Chubb on December 29, 2023 and sell it today you would earn a total of 4,927 from holding Chubb or generate 23.55% 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. Chubb
Performance |
Timeline |
FG Financial Group |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Chubb |
FG Financial and Chubb Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FG Financial and Chubb
The main advantage of trading using opposite FG Financial and Chubb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Financial position performs unexpectedly, Chubb 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 Chubb will offset losses from the drop in Chubb's long position.FG Financial vs. United Parks Resorts | FG Financial vs. Life Time Group | FG Financial vs. Brunswick | FG Financial vs. WPP PLC ADR |
Chubb vs. Loews Corp | Chubb vs. American Financial Group | Chubb vs. Hartford Financial Services | Chubb vs. Horace Mann Educators |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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