Correlation Between GP Investments and Fidelity National
Can any of the company-specific risk be diversified away by investing in both GP Investments and Fidelity National 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 GP Investments and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GP Investments and Fidelity National Information, you can compare the effects of market volatilities on GP Investments and Fidelity National 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 GP Investments with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of GP Investments and Fidelity National.
Diversification Opportunities for GP Investments and Fidelity National
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GPIV33 and Fidelity is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding GP Investments and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and GP Investments 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 GP Investments are associated (or correlated) with Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of GP Investments i.e., GP Investments and Fidelity National go up and down completely randomly.
Pair Corralation between GP Investments and Fidelity National
Assuming the 90 days trading horizon GP Investments is expected to generate 3.03 times more return on investment than Fidelity National. However, GP Investments is 3.03 times more volatile than Fidelity National Information. It trades about 0.16 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.32 per unit of risk. If you would invest 365.00 in GP Investments on August 31, 2024 and sell it today you would earn a total of 33.00 from holding GP Investments or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GP Investments vs. Fidelity National Information
Performance |
| Timeline |
| GP Investments |
| Fidelity National |
GP Investments and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GP Investments and Fidelity National
The main advantage of trading using opposite GP Investments and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GP Investments position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| GP Investments vs. The Bank of | GP Investments vs. Ameriprise Financial | GP Investments vs. Banco BTG Pactual | GP Investments vs. Banco BTG Pactual |
| Fidelity National vs. Fiserv Inc | Fidelity National vs. Cognizant Technology Solutions | Fidelity National vs. Fras le SA | Fidelity National vs. Energisa SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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