Correlation Between Fidelity National and Cantaloupe
Can any of the company-specific risk be diversified away by investing in both Fidelity National 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 Fidelity National and Cantaloupe 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 Cantaloupe, you can compare the effects of market volatilities on Fidelity National 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 Fidelity National with a short position of Cantaloupe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Cantaloupe.
Diversification Opportunities for Fidelity National and Cantaloupe
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Cantaloupe is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Cantaloupe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cantaloupe 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 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 Fidelity National i.e., Fidelity National and Cantaloupe go up and down completely randomly.
Pair Corralation between Fidelity National and Cantaloupe
Considering the 90-day investment horizon Fidelity National is expected to generate 1.2 times less return on investment than Cantaloupe. But when comparing it to its historical volatility, Fidelity National Information is 2.05 times less risky than Cantaloupe. It trades about 0.13 of its potential returns per unit of risk. Cantaloupe is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 681.00 in Cantaloupe on August 28, 2024 and sell it today you would earn a total of 268.00 from holding Cantaloupe or generate 39.35% 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. Cantaloupe
Performance |
| Timeline |
| Fidelity National |
| Cantaloupe |
Fidelity National and Cantaloupe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Cantaloupe
The main advantage of trading using opposite Fidelity National and Cantaloupe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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