Correlation Between Fidelity National and ProtoSource
Can any of the company-specific risk be diversified away by investing in both Fidelity National and ProtoSource 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 ProtoSource 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 ProtoSource, you can compare the effects of market volatilities on Fidelity National and ProtoSource 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 ProtoSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and ProtoSource.
Diversification Opportunities for Fidelity National and ProtoSource
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and ProtoSource is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and ProtoSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProtoSource 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 ProtoSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProtoSource has no effect on the direction of Fidelity National i.e., Fidelity National and ProtoSource go up and down completely randomly.
Pair Corralation between Fidelity National and ProtoSource
Considering the 90-day investment horizon Fidelity National is expected to generate 1.72 times less return on investment than ProtoSource. But when comparing it to its historical volatility, Fidelity National Information is 5.81 times less risky than ProtoSource. It trades about 0.04 of its potential returns per unit of risk. ProtoSource is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1.61 in ProtoSource on August 30, 2024 and sell it today you would lose (0.69) from holding ProtoSource or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.11% |
| Values | Daily Returns |
Fidelity National Information vs. ProtoSource
Performance |
| Timeline |
| Fidelity National |
| ProtoSource |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity National and ProtoSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and ProtoSource
The main advantage of trading using opposite Fidelity National and ProtoSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, ProtoSource 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 ProtoSource will offset losses from the drop in ProtoSource's long position.| Fidelity National vs. Jack Henry Associates | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. CDW Corp | Fidelity National vs. Gartner |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |