Correlation Between Fidelity National and BIT Mining
Can any of the company-specific risk be diversified away by investing in both Fidelity National and BIT Mining 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 BIT Mining 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 BIT Mining, you can compare the effects of market volatilities on Fidelity National and BIT Mining 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 BIT Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and BIT Mining.
Diversification Opportunities for Fidelity National and BIT Mining
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and BIT is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and BIT Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIT Mining 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 BIT Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIT Mining has no effect on the direction of Fidelity National i.e., Fidelity National and BIT Mining go up and down completely randomly.
Pair Corralation between Fidelity National and BIT Mining
Considering the 90-day investment horizon Fidelity National is expected to generate 1.97 times less return on investment than BIT Mining. But when comparing it to its historical volatility, Fidelity National Information is 4.56 times less risky than BIT Mining. It trades about 0.09 of its potential returns per unit of risk. BIT Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 259.00 in BIT Mining on August 30, 2024 and sell it today you would earn a total of 27.00 from holding BIT Mining or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. BIT Mining
Performance |
| Timeline |
| Fidelity National |
| BIT Mining |
Fidelity National and BIT Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and BIT Mining
The main advantage of trading using opposite Fidelity National and BIT Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, BIT Mining 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 BIT Mining will offset losses from the drop in BIT Mining's long position.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| BIT Mining vs. VNET Group DRC | BIT Mining vs. GDS Holdings | BIT Mining vs. CLARIVATE PLC | BIT Mining vs. CACI International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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