Correlation Between Fidelity National and MG Credit
Can any of the company-specific risk be diversified away by investing in both Fidelity National and MG Credit 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 MG Credit 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 MG Credit Income, you can compare the effects of market volatilities on Fidelity National and MG Credit 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 MG Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and MG Credit.
Diversification Opportunities for Fidelity National and MG Credit
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and MGCI is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and MG Credit Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MG Credit Income 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 MG Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MG Credit Income has no effect on the direction of Fidelity National i.e., Fidelity National and MG Credit go up and down completely randomly.
Pair Corralation between Fidelity National and MG Credit
Assuming the 90 days trading horizon Fidelity National Information is expected to generate 2.46 times more return on investment than MG Credit. However, Fidelity National is 2.46 times more volatile than MG Credit Income. It trades about 0.03 of its potential returns per unit of risk. MG Credit Income is currently generating about 0.03 per unit of risk. If you would invest 6,144 in Fidelity National Information on October 16, 2024 and sell it today you would earn a total of 1,586 from holding Fidelity National Information or generate 25.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Fidelity National Information vs. MG Credit Income
Performance |
| Timeline |
| Fidelity National |
| MG Credit Income |
Fidelity National and MG Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and MG Credit
The main advantage of trading using opposite Fidelity National and MG Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, MG Credit 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 MG Credit will offset losses from the drop in MG Credit's long position.| Fidelity National vs. Global Net Lease | Fidelity National vs. Wizz Air Holdings | Fidelity National vs. Tavistock Investments Plc | Fidelity National vs. Mobius Investment Trust |
| MG Credit vs. Fidelity National Information | MG Credit vs. Compal Electronics GDR | MG Credit vs. Micron Technology | MG Credit vs. Concurrent Technologies Plc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |