Correlation Between Fidelity National and CSE Global
Can any of the company-specific risk be diversified away by investing in both Fidelity National and CSE Global 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 CSE Global 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 CSE Global Limited, you can compare the effects of market volatilities on Fidelity National and CSE Global 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 CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and CSE Global.
Diversification Opportunities for Fidelity National and CSE Global
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and CSE is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited 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 CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of Fidelity National i.e., Fidelity National and CSE Global go up and down completely randomly.
Pair Corralation between Fidelity National and CSE Global
Considering the 90-day investment horizon Fidelity National Information is expected to under-perform the CSE Global. But the stock apears to be less risky and, when comparing its historical volatility, Fidelity National Information is 3.95 times less risky than CSE Global. The stock trades about -0.19 of its potential returns per unit of risk. The CSE Global Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 30.00 in CSE Global Limited on October 26, 2024 and sell it today you would earn a total of 4.00 from holding CSE Global Limited or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity National Information vs. CSE Global Limited
Performance |
| Timeline |
| Fidelity National |
| CSE Global Limited |
Fidelity National and CSE Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and CSE Global
The main advantage of trading using opposite Fidelity National and CSE Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, CSE Global 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 CSE Global will offset losses from the drop in CSE Global's long position.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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