Correlation Between Spire Healthcare and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Spire Healthcare 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 Spire Healthcare and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Healthcare Group and Fidelity National Information, you can compare the effects of market volatilities on Spire Healthcare 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 Spire Healthcare with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Healthcare and Fidelity National.
Diversification Opportunities for Spire Healthcare and Fidelity National
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and Fidelity is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Spire Healthcare Group and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Spire Healthcare 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 Spire Healthcare Group 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 Spire Healthcare i.e., Spire Healthcare and Fidelity National go up and down completely randomly.
Pair Corralation between Spire Healthcare and Fidelity National
Assuming the 90 days trading horizon Spire Healthcare Group is expected to generate 1.43 times more return on investment than Fidelity National. However, Spire Healthcare is 1.43 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 -0.22 per unit of risk. If you would invest 22,000 in Spire Healthcare Group on September 12, 2024 and sell it today you would earn a total of 300.00 from holding Spire Healthcare Group or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Healthcare Group vs. Fidelity National Information
Performance |
| Timeline |
| Spire Healthcare |
| Fidelity National |
Spire Healthcare and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Healthcare and Fidelity National
The main advantage of trading using opposite Spire Healthcare and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Healthcare 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.| Spire Healthcare vs. Mulberry Group PLC | Spire Healthcare vs. Ikigai Ventures | Spire Healthcare vs. Neometals | Spire Healthcare vs. Coor Service Management |
| Fidelity National vs. Telecom Italia SpA | Fidelity National vs. Anglesey Mining | Fidelity National vs. Wheaton Precious Metals | Fidelity National vs. Silvercorp Metals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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