Correlation Between Fidelity National and Annaly Capital
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Annaly Capital 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 Annaly Capital 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 Annaly Capital Management,, you can compare the effects of market volatilities on Fidelity National and Annaly Capital 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 Annaly Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Annaly Capital.
Diversification Opportunities for Fidelity National and Annaly Capital
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidelity and Annaly is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Annaly Capital Management, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Annaly Capital Manag 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 Annaly Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Annaly Capital Manag has no effect on the direction of Fidelity National i.e., Fidelity National and Annaly Capital go up and down completely randomly.
Pair Corralation between Fidelity National and Annaly Capital
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Annaly Capital. In addition to that, Fidelity National is 1.17 times more volatile than Annaly Capital Management,. It trades about -0.2 of its total potential returns per unit of risk. Annaly Capital Management, is currently generating about -0.09 per unit of volatility. If you would invest 11,586 in Annaly Capital Management, on October 12, 2024 and sell it today you would lose (247.00) from holding Annaly Capital Management, or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Fidelity National Information vs. Annaly Capital Management,
Performance |
| Timeline |
| Fidelity National |
| Annaly Capital Manag |
Fidelity National and Annaly Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Annaly Capital
The main advantage of trading using opposite Fidelity National and Annaly Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Annaly Capital 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 Annaly Capital will offset losses from the drop in Annaly Capital's long position.| Fidelity National vs. Multilaser Industrial SA | Fidelity National vs. Alaska Air Group, | Fidelity National vs. Metalrgica Riosulense SA | Fidelity National vs. salesforce inc |
| Annaly Capital vs. Verizon Communications | Annaly Capital vs. Unity Software | Annaly Capital vs. T Mobile | Annaly Capital vs. Metalurgica Gerdau 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |