Pair Correlation Between Federated National and Loews

This module allows you to analyze existing cross correlation between Federated National Holding Company and Loews Corporation. You can compare the effects of market volatilities on Federated National and Loews 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 Federated National with a short position of Loews. See also your portfolio center. Please also check ongoing floating volatility patterns of Federated National and Loews.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Federated National Holding Com  vs   Loews Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Federated National Holding Company is expected to generate 3.33 times more return on investment than Loews. However, Federated National is 3.33 times more volatile than Loews Corporation. It trades about 0.1 of its potential returns per unit of risk. Loews Corporation is currently generating about -0.08 per unit of risk. If you would invest  1,367  in Federated National Holding Company on November 14, 2017 and sell it today you would earn a total of  53  from holding Federated National Holding Company or generate 3.88% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Federated National and Loews
-0.32

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Federated National Holding Com and Loews Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Loews and Federated National 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 Federated National Holding Company are associated (or correlated) with Loews. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loews has no effect on the direction of Federated National i.e. Federated National and Loews go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Federated National H

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Federated National Holding Company are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.

Loews

  
0 

Risk-Adjusted Performance

Over the last 30 days Loews Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.