Correlation Between FG Financial and CNA Financial
Can any of the company-specific risk be diversified away by investing in both FG Financial and CNA Financial 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 CNA Financial 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 CNA Financial, you can compare the effects of market volatilities on FG Financial and CNA Financial 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 CNA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FG Financial and CNA Financial.
Diversification Opportunities for FG Financial and CNA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PIH and CNA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FG Financial Group and CNA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNA Financial 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 CNA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNA Financial has no effect on the direction of FG Financial i.e., FG Financial and CNA Financial go up and down completely randomly.
Pair Corralation between FG Financial and CNA Financial
If you would invest 0.00 in FG Financial Group on January 17, 2024 and sell it today you would earn a total of 0.00 from holding FG Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
FG Financial Group vs. CNA Financial
Performance |
| Timeline |
| FG Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNA Financial |
FG Financial and CNA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FG Financial and CNA Financial
The main advantage of trading using opposite FG Financial and CNA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FG Financial position performs unexpectedly, CNA Financial 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 CNA Financial will offset losses from the drop in CNA Financial's long position.| FG Financial vs. Noble plc | FG Financial vs. Seadrill Limited | FG Financial vs. Where Food Comes | FG Financial vs. BBB Foods |
| CNA Financial vs. Aquagold International | CNA Financial vs. Thrivent High Yield | CNA Financial vs. Morningstar Unconstrained Allocation | CNA Financial vs. T Rowe Price |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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