Correlation Between Baldwin Lyons and Fednat Holding
Can any of the company-specific risk be diversified away by investing in both Baldwin Lyons and Fednat Holding 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 Baldwin Lyons and Fednat Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baldwin Lyons and Fednat Holding Co, you can compare the effects of market volatilities on Baldwin Lyons and Fednat Holding 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 Baldwin Lyons with a short position of Fednat Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baldwin Lyons and Fednat Holding.
Diversification Opportunities for Baldwin Lyons and Fednat Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baldwin and Fednat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baldwin Lyons and Fednat Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fednat Holding and Baldwin Lyons 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 Baldwin Lyons are associated (or correlated) with Fednat Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fednat Holding has no effect on the direction of Baldwin Lyons i.e., Baldwin Lyons and Fednat Holding go up and down completely randomly.
Pair Corralation between Baldwin Lyons and Fednat Holding
If you would invest 0.16 in Fednat Holding Co on February 6, 2024 and sell it today you would earn a total of 0.00 from holding Fednat Holding Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Baldwin Lyons vs. Fednat Holding Co
Performance |
| Timeline |
| Baldwin Lyons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fednat Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baldwin Lyons and Fednat Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baldwin Lyons and Fednat Holding
The main advantage of trading using opposite Baldwin Lyons and Fednat Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baldwin Lyons position performs unexpectedly, Fednat Holding 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 Fednat Holding will offset losses from the drop in Fednat Holding's long position.| Baldwin Lyons vs. GMxico Transportes SAB | Baldwin Lyons vs. NiSource | Baldwin Lyons vs. Portland General Electric | Baldwin Lyons vs. United Airlines Holdings |
| Fednat Holding vs. Anheuser Busch Inbev | Fednat Holding vs. Keurig Dr Pepper | Fednat Holding vs. Fernhill Beverage | Fednat Holding vs. Mesa Air Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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