Correlation Between Commerzbank and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Commerzbank 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 Commerzbank and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerzbank AG and Fidelity National Information, you can compare the effects of market volatilities on Commerzbank 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 Commerzbank with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerzbank and Fidelity National.
Diversification Opportunities for Commerzbank and Fidelity National
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Commerzbank and Fidelity is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Commerzbank AG and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Commerzbank 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 Commerzbank AG 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 Commerzbank i.e., Commerzbank and Fidelity National go up and down completely randomly.
Pair Corralation between Commerzbank and Fidelity National
Assuming the 90 days trading horizon Commerzbank AG is expected to generate 1.46 times more return on investment than Fidelity National. However, Commerzbank is 1.46 times more volatile than Fidelity National Information. It trades about 0.58 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.14 per unit of risk. If you would invest 1,583 in Commerzbank AG on November 7, 2024 and sell it today you would earn a total of 253.00 from holding Commerzbank AG or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Commerzbank AG vs. Fidelity National Information
Performance |
| Timeline |
| Commerzbank AG |
| Fidelity National |
Commerzbank and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerzbank and Fidelity National
The main advantage of trading using opposite Commerzbank and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerzbank 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.| Commerzbank vs. Bigblu Broadband PLC | Commerzbank vs. Fidelity National Information | Commerzbank vs. Broadridge Financial Solutions | Commerzbank vs. Norman Broadbent Plc |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |