Correlation Between A1KA34 and Fidelity National
Can any of the company-specific risk be diversified away by investing in both A1KA34 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 A1KA34 and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A1KA34 and Fidelity National Information, you can compare the effects of market volatilities on A1KA34 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 A1KA34 with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1KA34 and Fidelity National.
Diversification Opportunities for A1KA34 and Fidelity National
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between A1KA34 and Fidelity is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding A1KA34 and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and A1KA34 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 A1KA34 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 A1KA34 i.e., A1KA34 and Fidelity National go up and down completely randomly.
Pair Corralation between A1KA34 and Fidelity National
Assuming the 90 days trading horizon A1KA34 is expected to generate 1.88 times more return on investment than Fidelity National. However, A1KA34 is 1.88 times more volatile than Fidelity National Information. It trades about 0.21 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.07 per unit of risk. If you would invest 4,348 in A1KA34 on September 14, 2024 and sell it today you would earn a total of 542.00 from holding A1KA34 or generate 12.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
A1KA34 vs. Fidelity National Information
Performance |
| Timeline |
| A1KA34 |
| Fidelity National |
A1KA34 and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A1KA34 and Fidelity National
The main advantage of trading using opposite A1KA34 and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1KA34 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.| A1KA34 vs. Fidelity National Information | A1KA34 vs. Metalurgica Gerdau SA | A1KA34 vs. GP Investments | A1KA34 vs. Charter Communications |
| Fidelity National vs. Electronic Arts | Fidelity National vs. Capital One Financial | Fidelity National vs. Extra Space Storage | Fidelity National vs. Beyond Meat |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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