Correlation Between Fidelity National and JSL SA
Can any of the company-specific risk be diversified away by investing in both Fidelity National and JSL SA 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 Fidelity National and JSL SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and JSL SA, you can compare the effects of market volatilities on Fidelity National and JSL SA 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 Fidelity National with a short position of JSL SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and JSL SA.
Diversification Opportunities for Fidelity National and JSL SA
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and JSL is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and JSL SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSL SA and Fidelity National 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 Fidelity National Information are associated (or correlated) with JSL SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSL SA has no effect on the direction of Fidelity National i.e., Fidelity National and JSL SA go up and down completely randomly.
Pair Corralation between Fidelity National and JSL SA
Assuming the 90 days trading horizon Fidelity National Information is expected to generate 0.56 times more return on investment than JSL SA. However, Fidelity National Information is 1.79 times less risky than JSL SA. It trades about 0.19 of its potential returns per unit of risk. JSL SA is currently generating about -0.08 per unit of risk. If you would invest 2,210 in Fidelity National Information on August 25, 2024 and sell it today you would earn a total of 898.00 from holding Fidelity National Information or generate 40.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. JSL SA
Performance |
| Timeline |
| Fidelity National |
| JSL SA |
Fidelity National and JSL SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and JSL SA
The main advantage of trading using opposite Fidelity National and JSL SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, JSL SA 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 JSL SA will offset losses from the drop in JSL SA's long position.| Fidelity National vs. Fras le SA | Fidelity National vs. Clave Indices De | Fidelity National vs. BTG Pactual Logstica | Fidelity National vs. Telefonaktiebolaget LM Ericsson |
| JSL SA vs. Fidelity National Information | JSL SA vs. Marvell Technology | JSL SA vs. Automatic Data Processing | JSL SA vs. Cognizant Technology Solutions |
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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