Correlation Between St Galler and Fidelity National
Can any of the company-specific risk be diversified away by investing in both St Galler and Fidelity National 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 St Galler and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between St Galler Kantonalbank and Fidelity National Information, you can compare the effects of market volatilities on St Galler and Fidelity National 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 St Galler with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of St Galler and Fidelity National.
Diversification Opportunities for St Galler and Fidelity National
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 0QQZ and Fidelity is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding St Galler Kantonalbank and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and St Galler 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 St Galler Kantonalbank are associated (or correlated) with Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of St Galler i.e., St Galler and Fidelity National go up and down completely randomly.
Pair Corralation between St Galler and Fidelity National
Assuming the 90 days trading horizon St Galler is expected to generate 4.16 times less return on investment than Fidelity National. But when comparing it to its historical volatility, St Galler Kantonalbank is 1.65 times less risky than Fidelity National. It trades about 0.06 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 8,019 in Fidelity National Information on November 7, 2024 and sell it today you would earn a total of 190.00 from holding Fidelity National Information or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
St Galler Kantonalbank vs. Fidelity National Information
Performance |
| Timeline |
| St Galler Kantonalbank |
| Fidelity National |
St Galler and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with St Galler and Fidelity National
The main advantage of trading using opposite St Galler and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if St Galler position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| St Galler vs. Electronic Arts | St Galler vs. Charter Communications Cl | St Galler vs. Compal Electronics GDR | St Galler vs. Vulcan Materials Co |
| Fidelity National vs. Check Point Software | Fidelity National vs. Pfeiffer Vacuum Technology | Fidelity National vs. Roper Technologies | Fidelity National vs. Liontrust Asset Management |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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