Correlation Between Fidelity National and Gartner
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Gartner 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 Gartner 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 Gartner, you can compare the effects of market volatilities on Fidelity National and Gartner 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 Gartner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Gartner.
Diversification Opportunities for Fidelity National and Gartner
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Gartner is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Gartner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gartner 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 Gartner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gartner has no effect on the direction of Fidelity National i.e., Fidelity National and Gartner go up and down completely randomly.
Pair Corralation between Fidelity National and Gartner
Considering the 90-day investment horizon Fidelity National Information is expected to under-perform the Gartner. But the stock apears to be less risky and, when comparing its historical volatility, Fidelity National Information is 1.28 times less risky than Gartner. The stock trades about -0.2 of its potential returns per unit of risk. The Gartner is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 51,467 in Gartner on August 27, 2024 and sell it today you would earn a total of 511.00 from holding Gartner or generate 0.99% 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. Gartner
Performance |
| Timeline |
| Fidelity National |
| Gartner |
Fidelity National and Gartner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Gartner
The main advantage of trading using opposite Fidelity National and Gartner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Gartner 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 Gartner will offset losses from the drop in Gartner's long position.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| Gartner vs. Data Storage Corp | Gartner vs. Usio Inc | Gartner vs. ARB IOT Group | Gartner vs. FiscalNote Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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