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

-0.56

Correlation Coefficient

Fidelis Insurance  Axa Equitable

Excellent diversification

The 3 months correlation between Fidelis and Axa is -0.56. 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. But the stock apears to be less risky and, when comparing its historical volatility, Fidelis Insurance Holdings is 1.04 times less risky than Axa Equitable. The stock trades about -0.24 of its potential returns per unit of risk. The Axa Equitable Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  4,637  in Axa Equitable Holdings on November 19, 2024 and sell it today you would earn a total of  897.00  from holding Axa Equitable Holdings or generate 19.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fidelis Insurance Holdings  vs.  Axa Equitable Holdings

Fidelis Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelis Insurance Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Axa Equitable Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Axa Equitable Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Axa Equitable demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind Fidelis Insurance Holdings and Axa Equitable Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.