Correlation Between Richardson Electronics and Fidelis Insurance
Can any of the company-specific risk be diversified away by investing in both Richardson Electronics and Fidelis Insurance 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 Richardson Electronics and Fidelis Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Richardson Electronics and Fidelis Insurance Holdings, you can compare the effects of market volatilities on Richardson Electronics and Fidelis Insurance 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 Richardson Electronics with a short position of Fidelis Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richardson Electronics and Fidelis Insurance.
Diversification Opportunities for Richardson Electronics and Fidelis Insurance
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Richardson and Fidelis is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Richardson Electronics and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance and Richardson Electronics 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 Richardson Electronics are associated (or correlated) with Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of Richardson Electronics i.e., Richardson Electronics and Fidelis Insurance go up and down completely randomly.
Pair Corralation between Richardson Electronics and Fidelis Insurance
Given the investment horizon of 90 days Richardson Electronics is expected to generate 1.99 times more return on investment than Fidelis Insurance. However, Richardson Electronics is 1.99 times more volatile than Fidelis Insurance Holdings. It trades about 0.07 of its potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about 0.05 per unit of risk. If you would invest 957.00 in Richardson Electronics on September 6, 2025 and sell it today you would earn a total of 109.00 from holding Richardson Electronics or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Richardson Electronics vs. Fidelis Insurance Holdings
Performance |
| Timeline |
| Richardson Electronics |
| Fidelis Insurance |
Richardson Electronics and Fidelis Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Richardson Electronics and Fidelis Insurance
The main advantage of trading using opposite Richardson Electronics and Fidelis Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richardson Electronics position performs unexpectedly, Fidelis Insurance 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 Fidelis Insurance will offset losses from the drop in Fidelis Insurance's long position.| Richardson Electronics vs. Hana Microelectronics Public | Richardson Electronics vs. Methode Electronics | Richardson Electronics vs. Video Display | Richardson Electronics vs. Treasury Wine Estates |
| Fidelis Insurance vs. Cadence Bank | Fidelis Insurance vs. ScanSource | Fidelis Insurance vs. Fevertree Drinks Plc | Fidelis Insurance vs. Malaga Financial |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities |