Correlation Between Fidelity National and Novavax
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Novavax 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 Fidelity National and Novavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and Novavax, you can compare the effects of market volatilities on Fidelity National and Novavax 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 Fidelity National with a short position of Novavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Novavax.
Diversification Opportunities for Fidelity National and Novavax
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Novavax is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Novavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novavax and Fidelity National 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 Fidelity National Information are associated (or correlated) with Novavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novavax has no effect on the direction of Fidelity National i.e., Fidelity National and Novavax go up and down completely randomly.
Pair Corralation between Fidelity National and Novavax
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Novavax. But the stock apears to be less risky and, when comparing its historical volatility, Fidelity National Information is 21.46 times less risky than Novavax. The stock trades about -0.26 of its potential returns per unit of risk. The Novavax is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,190 in Novavax on September 15, 2024 and sell it today you would earn a total of 0.00 from holding Novavax or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. Novavax
Performance |
| Timeline |
| Fidelity National |
| Novavax |
Fidelity National and Novavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Novavax
The main advantage of trading using opposite Fidelity National and Novavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Novavax 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 Novavax will offset losses from the drop in Novavax's long position.| Fidelity National vs. Samsung Electronics Co | Fidelity National vs. Samsung Electronics Co | Fidelity National vs. Hyundai Motor | Fidelity National vs. Reliance Industries Ltd |
| Novavax vs. GlobalData PLC | Novavax vs. Cars Inc | Novavax vs. Fidelity National Information | Novavax vs. Public Storage |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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