Correlation Between Stewart Information and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Stewart Information 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 Stewart Information and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stewart Information Services and Fidelity National Information, you can compare the effects of market volatilities on Stewart Information 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 Stewart Information with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stewart Information and Fidelity National.
Diversification Opportunities for Stewart Information and Fidelity National
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stewart and Fidelity is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Stewart Information Services and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Stewart Information 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 Stewart Information Services 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 Stewart Information i.e., Stewart Information and Fidelity National go up and down completely randomly.
Pair Corralation between Stewart Information and Fidelity National
Assuming the 90 days horizon Stewart Information Services is expected to generate 1.32 times more return on investment than Fidelity National. However, Stewart Information is 1.32 times more volatile than Fidelity National Information. It trades about 0.09 of its potential returns per unit of risk. Fidelity National Information is currently generating about 0.1 per unit of risk. If you would invest 4,030 in Stewart Information Services on August 26, 2024 and sell it today you would earn a total of 2,620 from holding Stewart Information Services or generate 65.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stewart Information Services vs. Fidelity National Information
Performance |
| Timeline |
| Stewart Information |
| Fidelity National |
Stewart Information and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stewart Information and Fidelity National
The main advantage of trading using opposite Stewart Information and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stewart Information 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.| Stewart Information vs. Insurance Australia Group | Stewart Information vs. Superior Plus Corp | Stewart Information vs. NMI Holdings | Stewart Information vs. Origin Agritech |
| Fidelity National vs. Apple Inc | Fidelity National vs. Apple Inc | Fidelity National vs. Apple Inc | Fidelity National vs. Apple Inc |
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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