Correlation Between Fidelity National and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Anglo Asian 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 Anglo Asian 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 Anglo Asian Mining, you can compare the effects of market volatilities on Fidelity National and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Anglo Asian.
Diversification Opportunities for Fidelity National and Anglo Asian
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Anglo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Fidelity National i.e., Fidelity National and Anglo Asian go up and down completely randomly.
Pair Corralation between Fidelity National and Anglo Asian
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Anglo Asian. In addition to that, Fidelity National is 1.01 times more volatile than Anglo Asian Mining. It trades about -0.2 of its total potential returns per unit of risk. Anglo Asian Mining is currently generating about -0.06 per unit of volatility. If you would invest 11,500 in Anglo Asian Mining on December 8, 2024 and sell it today you would lose (500.00) from holding Anglo Asian Mining or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity National Information vs. Anglo Asian Mining
Performance |
| Timeline |
| Fidelity National |
| Anglo Asian Mining |
Fidelity National and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Anglo Asian
The main advantage of trading using opposite Fidelity National and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Fidelity National vs. K3 Business Technology | ||
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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