Correlation Between Extra Space and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Extra Space 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 Extra Space and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extra Space Storage and Fidelity National Information, you can compare the effects of market volatilities on Extra Space 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 Extra Space with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extra Space and Fidelity National.
Diversification Opportunities for Extra Space and Fidelity National
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Extra and Fidelity is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Extra Space Storage and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Extra Space 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 Extra Space Storage 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 Extra Space i.e., Extra Space and Fidelity National go up and down completely randomly.
Pair Corralation between Extra Space and Fidelity National
Assuming the 90 days trading horizon Extra Space Storage is expected to generate 3.08 times more return on investment than Fidelity National. However, Extra Space is 3.08 times more volatile than Fidelity National Information. It trades about 0.15 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.32 per unit of risk. If you would invest 24,000 in Extra Space Storage on August 31, 2024 and sell it today you would earn a total of 2,097 from holding Extra Space Storage or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Extra Space Storage vs. Fidelity National Information
Performance |
| Timeline |
| Extra Space Storage |
| Fidelity National |
Extra Space and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extra Space and Fidelity National
The main advantage of trading using opposite Extra Space and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extra Space 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.| Extra Space vs. BTG Pactual Logstica | Extra Space vs. Fras le SA | Extra Space vs. Western Digital | Extra Space vs. Energisa SA |
| Fidelity National vs. Fiserv Inc | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. Fras le SA | Fidelity National vs. Energisa SA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |