Correlation Between Fiserv, and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both Fiserv, and Cantaloupe 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 Fiserv, and Cantaloupe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiserv, and Cantaloupe, you can compare the effects of market volatilities on Fiserv, and Cantaloupe 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 Fiserv, with a short position of Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiserv, and Cantaloupe.
Diversification Opportunities for Fiserv, and Cantaloupe
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fiserv, and Cantaloupe is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fiserv, and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe and Fiserv, 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 Fiserv, are associated (or correlated) with Cantaloupe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cantaloupe has no effect on the direction of Fiserv, i.e., Fiserv, and Cantaloupe go up and down completely randomly.
Pair Corralation between Fiserv, and Cantaloupe
Allowing for the 90-day total investment horizon Fiserv, is expected to generate 0.6 times more return on investment than Cantaloupe. However, Fiserv, is 1.67 times less risky than Cantaloupe. It trades about 0.36 of its potential returns per unit of risk. Cantaloupe is currently generating about 0.15 per unit of risk. If you would invest 20,142 in Fiserv, on August 27, 2024 and sell it today you would earn a total of 2,014 from holding Fiserv, or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiserv, vs. Cantaloupe
Performance |
| Timeline |
| Fiserv, |
| Cantaloupe |
Fiserv, and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiserv, and Cantaloupe
The main advantage of trading using opposite Fiserv, and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiserv, position performs unexpectedly, Cantaloupe 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 Cantaloupe will offset losses from the drop in Cantaloupe's long position.| Fiserv, vs. CLARIVATE PLC | Fiserv, vs. WNS Holdings | Fiserv, vs. GDS Holdings | Fiserv, vs. CACI International |
| Cantaloupe vs. FiscalNote Holdings | Cantaloupe vs. CLPS Inc | Cantaloupe vs. Formula Systems 1985 | Cantaloupe vs. CSP Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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