Correlation Between Fiserv and Concentrix

Can any of the company-specific risk be diversified away by investing in both Fiserv and Concentrix 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 Fiserv and Concentrix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fiserv Inc and Concentrix, you can compare the effects of market volatilities on Fiserv and Concentrix 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 Fiserv with a short position of Concentrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiserv and Concentrix.

Diversification Opportunities for Fiserv and Concentrix

0.22

Correlation Coefficient

Fiserv  Concentrix

Modest diversification

The 3 months correlation between Fiserv and Concentrix is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fiserv Inc and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and Fiserv 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 Fiserv Inc are associated (or correlated) with Concentrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentrix has no effect on the direction of Fiserv i.e., Fiserv and Concentrix go up and down completely randomly.

Pair Corralation between Fiserv and Concentrix

Allowing for the 90-day total investment horizon Fiserv is expected to generate 3.31 times less return on investment than Concentrix. But when comparing it to its historical volatility, Fiserv Inc is 2.0 times less risky than Concentrix. It trades about 0.0 of its potential returns per unit of risk. Concentrix is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  6,209  in Concentrix on March 14, 2024 and sell it today you would lose (65.00) from holding Concentrix or give up 1.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Fiserv Inc  vs.  Concentrix

Fiserv Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fiserv Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Fiserv is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Concentrix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concentrix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Concentrix is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Fiserv and Concentrix

The main advantage of trading using opposite Fiserv and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiserv position performs unexpectedly, Concentrix 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 Concentrix will offset losses from the drop in Concentrix's long position.

The idea behind Fiserv Inc and Concentrix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.