Correlation Between Fidelity National and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Anglesey Mining 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 Anglesey Mining 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 Anglesey Mining, you can compare the effects of market volatilities on Fidelity National and Anglesey Mining 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Anglesey Mining.
Diversification Opportunities for Fidelity National and Anglesey Mining
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Anglesey is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Fidelity National i.e., Fidelity National and Anglesey Mining go up and down completely randomly.
Pair Corralation between Fidelity National and Anglesey Mining
Assuming the 90 days trading horizon Fidelity National Information is expected to generate 0.46 times more return on investment than Anglesey Mining. However, Fidelity National Information is 2.16 times less risky than Anglesey Mining. It trades about -0.19 of its potential returns per unit of risk. Anglesey Mining is currently generating about -0.27 per unit of risk. If you would invest 8,956 in Fidelity National Information on September 3, 2024 and sell it today you would lose (421.00) from holding Fidelity National Information or give up 4.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. Anglesey Mining
Performance |
| Timeline |
| Fidelity National |
| Anglesey Mining |
Fidelity National and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Anglesey Mining
The main advantage of trading using opposite Fidelity National and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Anglesey Mining 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| Fidelity National vs. Catalyst Media Group | Fidelity National vs. CATLIN GROUP | Fidelity National vs. Magnora ASA | Fidelity National vs. RTW Venture Fund |
| Anglesey Mining vs. Cincinnati Financial Corp | Anglesey Mining vs. Extra Space Storage | Anglesey Mining vs. Alliance Data Systems | Anglesey Mining vs. Fidelity National Information |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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