Correlation Between JSL SA and Fidelity National
Can any of the company-specific risk be diversified away by investing in both JSL SA 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 JSL SA and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JSL SA and Fidelity National Information, you can compare the effects of market volatilities on JSL SA 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 JSL SA with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of JSL SA and Fidelity National.
Diversification Opportunities for JSL SA and Fidelity National
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JSL and Fidelity is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding JSL SA and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and JSL SA 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 JSL SA 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 JSL SA i.e., JSL SA and Fidelity National go up and down completely randomly.
Pair Corralation between JSL SA and Fidelity National
Assuming the 90 days trading horizon JSL SA is expected to generate 1.41 times more return on investment than Fidelity National. However, JSL SA is 1.41 times more volatile than Fidelity National Information. It trades about 0.03 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.04 per unit of risk. If you would invest 565.00 in JSL SA on August 25, 2024 and sell it today you would earn a total of 163.00 from holding JSL SA or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
JSL SA vs. Fidelity National Information
Performance |
| Timeline |
| JSL SA |
| Fidelity National |
JSL SA and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JSL SA and Fidelity National
The main advantage of trading using opposite JSL SA and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JSL SA 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.| JSL SA vs. Fidelity National Information | JSL SA vs. Marvell Technology | JSL SA vs. Automatic Data Processing | JSL SA vs. Cognizant Technology Solutions |
| Fidelity National vs. Fras le SA | Fidelity National vs. Clave Indices De | Fidelity National vs. BTG Pactual Logstica | Fidelity National vs. Telefonaktiebolaget LM Ericsson |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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