Correlation Between Fidelis Insurance and Axa Equitable
Can any of the company-specific risk be diversified away by investing in both Fidelis Insurance and Axa Equitable 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 Axa Equitable 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 Axa Equitable Holdings, you can compare the effects of market volatilities on Fidelis Insurance and Axa Equitable 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 Axa Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelis Insurance and Axa Equitable.
Diversification Opportunities for Fidelis Insurance and Axa Equitable
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelis and Axa is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelis Insurance Holdings and Axa Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa Equitable Holdings 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 Axa Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa Equitable Holdings has no effect on the direction of Fidelis Insurance i.e., Fidelis Insurance and Axa Equitable go up and down completely randomly.
Pair Corralation between Fidelis Insurance and Axa Equitable
Given the investment horizon of 90 days Fidelis Insurance Holdings is expected to under-perform the Axa Equitable. In addition to that, Fidelis Insurance is 1.74 times more volatile than Axa Equitable Holdings. It trades about -0.01 of its total potential returns per unit of risk. Axa Equitable Holdings is currently generating about 0.42 per unit of volatility. If you would invest 3,563 in Axa Equitable Holdings on February 16, 2024 and sell it today you would earn a total of 485.00 from holding Axa Equitable Holdings or generate 13.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelis Insurance Holdings vs. Axa Equitable Holdings
Performance |
Timeline |
Fidelis Insurance |
Axa Equitable Holdings |
Fidelis Insurance and Axa Equitable Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelis Insurance and Axa Equitable
The main advantage of trading using opposite Fidelis Insurance and Axa Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelis Insurance position performs unexpectedly, Axa Equitable 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 Axa Equitable will offset losses from the drop in Axa Equitable's long position.Fidelis Insurance vs. International General Insurance | Fidelis Insurance vs. Assicurazioni Generali SpA | Fidelis Insurance vs. ageas SANV | Fidelis Insurance vs. AXA SA |
Axa Equitable vs. International General Insurance | Axa Equitable vs. Assicurazioni Generali SpA | Axa Equitable vs. ageas SANV | Axa Equitable vs. AXA SA |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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