Correlation Between HCI and FedNat Holding
Can any of the company-specific risk be diversified away by investing in both HCI 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 HCI and FedNat Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCI Group and FedNat Holding, you can compare the effects of market volatilities on HCI 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 HCI with a short position of FedNat Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCI and FedNat Holding.
Diversification Opportunities for HCI and FedNat Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HCI and FedNat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HCI Group and FedNat Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedNat Holding and HCI 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 HCI Group 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 HCI i.e., HCI and FedNat Holding go up and down completely randomly.
Pair Corralation between HCI and FedNat Holding
If you would invest 10,863 in HCI Group on December 18, 2024 and sell it today you would earn a total of 3,031 from holding HCI Group or generate 27.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
HCI Group vs. FedNat Holding
Performance |
Timeline |
HCI Group |
FedNat Holding |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
HCI and FedNat Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HCI and FedNat Holding
The main advantage of trading using opposite HCI and FedNat Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCI 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.HCI vs. Universal Insurance Holdings | HCI vs. Kingstone Companies | HCI vs. Horace Mann Educators | HCI vs. Heritage Insurance Hldgs |
FedNat Holding vs. Teleflex Incorporated | FedNat Holding vs. Akanda Corp | FedNat Holding vs. Alphatec Holdings | FedNat Holding vs. National Vision 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |