Correlation Between Fidelity National and Structured Products
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Structured Products 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 Structured Products 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 Structured Products Corp, you can compare the effects of market volatilities on Fidelity National and Structured Products 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 Structured Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Structured Products.
Diversification Opportunities for Fidelity National and Structured Products
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Structured is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Structured Products Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structured Products Corp 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 Structured Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structured Products Corp has no effect on the direction of Fidelity National i.e., Fidelity National and Structured Products go up and down completely randomly.
Pair Corralation between Fidelity National and Structured Products
Considering the 90-day investment horizon Fidelity National Information is expected to generate 0.99 times more return on investment than Structured Products. However, Fidelity National Information is 1.01 times less risky than Structured Products. It trades about 0.1 of its potential returns per unit of risk. Structured Products Corp is currently generating about 0.03 per unit of risk. If you would invest 5,275 in Fidelity National Information on August 31, 2024 and sell it today you would earn a total of 3,255 from holding Fidelity National Information or generate 61.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.79% |
| Values | Daily Returns |
Fidelity National Information vs. Structured Products Corp
Performance |
| Timeline |
| Fidelity National |
| Structured Products Corp |
Fidelity National and Structured Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Structured Products
The main advantage of trading using opposite Fidelity National and Structured Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Structured Products 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 Structured Products will offset losses from the drop in Structured Products' long position.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
| Structured Products vs. HUMANA INC | Structured Products vs. SCOR PK | Structured Products vs. Aquagold International | Structured Products vs. Thrivent High Yield |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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