Correlation Between Blackstone and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Fidelity National Financial, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Fidelity National.
Diversification Opportunities for Blackstone and Fidelity National
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackstone and Fidelity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Fidelity National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Fidelity National go up and down completely randomly.
Pair Corralation between Blackstone and Fidelity National
Allowing for the 90-day total investment horizon Blackstone is expected to generate 1.73 times less return on investment than Fidelity National. In addition to that, Blackstone is 1.41 times more volatile than Fidelity National Financial. It trades about 0.07 of its total potential returns per unit of risk. Fidelity National Financial is currently generating about 0.16 per unit of volatility. If you would invest 5,598 in Fidelity National Financial on November 2, 2024 and sell it today you would earn a total of 258.00 from holding Fidelity National Financial or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Fidelity National Financial
Performance |
| Timeline |
| Blackstone Group |
| Fidelity National |
Blackstone and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Fidelity National
The main advantage of trading using opposite Blackstone and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. Blue Owl Capital | Blackstone vs. TPG Inc | Blackstone vs. Patria Investments | Blackstone vs. Cion Investment Corp |
| Fidelity National vs. AXIS Capital Holdings | Fidelity National vs. Assured Guaranty | Fidelity National vs. Enact Holdings | Fidelity National vs. NMI Holdings |
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 Directory module to find actively traded commodities issued by global exchanges.
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