Correlation Between Fednat Holding and Patriot National
Can any of the company-specific risk be diversified away by investing in both Fednat Holding and Patriot National 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 Fednat Holding and Patriot National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fednat Holding Co and Patriot National, you can compare the effects of market volatilities on Fednat Holding and Patriot National 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 Fednat Holding with a short position of Patriot National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fednat Holding and Patriot National.
Diversification Opportunities for Fednat Holding and Patriot National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fednat and Patriot is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fednat Holding Co and Patriot National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patriot National and Fednat Holding 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 Fednat Holding Co are associated (or correlated) with Patriot National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patriot National has no effect on the direction of Fednat Holding i.e., Fednat Holding and Patriot National go up and down completely randomly.
Pair Corralation between Fednat Holding and Patriot National
If you would invest (100.00) in Patriot National on January 26, 2024 and sell it today you would earn a total of 100.00 from holding Patriot National or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fednat Holding Co vs. Patriot National
Performance |
| Timeline |
| Fednat Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Patriot National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fednat Holding and Patriot National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fednat Holding and Patriot National
The main advantage of trading using opposite Fednat Holding and Patriot National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fednat Holding position performs unexpectedly, Patriot National 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 Patriot National will offset losses from the drop in Patriot National's long position.| Fednat Holding vs. Asure Software | Fednat Holding vs. Anheuser Busch Inbev | Fednat Holding vs. DHI Group | Fednat Holding vs. Bm Technologies |
| Patriot National vs. United Fire Group | Patriot National vs. BlueScope Steel Limited | Patriot National vs. Cincinnati Financial | Patriot National vs. Maiden Holdings |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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