Correlation Between Nayax and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Nayax 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 Nayax and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nayax and Fidelity National Information, you can compare the effects of market volatilities on Nayax 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 Nayax with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and Fidelity National.
Diversification Opportunities for Nayax and Fidelity National
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nayax and Fidelity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Nayax 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 Nayax 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 Nayax i.e., Nayax and Fidelity National go up and down completely randomly.
Pair Corralation between Nayax and Fidelity National
Given the investment horizon of 90 days Nayax is expected to generate 2.8 times more return on investment than Fidelity National. However, Nayax is 2.8 times more volatile than Fidelity National Information. It trades about 0.06 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.2 per unit of risk. If you would invest 2,783 in Nayax on August 27, 2024 and sell it today you would earn a total of 86.00 from holding Nayax or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nayax vs. Fidelity National Information
Performance |
| Timeline |
| Nayax |
| Fidelity National |
Nayax and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nayax and Fidelity National
The main advantage of trading using opposite Nayax and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax 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.| Nayax vs. The Hackett Group | Nayax vs. CSP Inc | Nayax vs. Formula Systems 1985 | Nayax vs. Information Services Group |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |