Correlation Between Fidelity National and Concentrix

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

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

Diversification Opportunities for Fidelity National and Concentrix

0.51

Correlation Coefficient

Fidelity National  Concentrix

Very weak diversification

The 3 months correlation between Fidelity and Concentrix is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Concentrix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentrix and Fidelity National 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 Fidelity National Information 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 Fidelity National i.e., Fidelity National and Concentrix go up and down completely randomly.

Pair Corralation between Fidelity National and Concentrix

Considering the 90-day investment horizon Fidelity National Information is expected to generate 0.64 times more return on investment than Concentrix. However, Fidelity National Information is 1.56 times less risky than Concentrix. It trades about 0.13 of its potential returns per unit of risk. Concentrix is currently generating about 0.0 per unit of risk. If you would invest  6,790  in Fidelity National Information on March 14, 2024 and sell it today you would earn a total of  793.00  from holding Fidelity National Information or generate 11.68% return on investment over 90 days.

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

Fidelity National Information  vs.  Concentrix

Fidelity National

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity National Information are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent forward indicators, Fidelity National may actually be approaching a critical reversion point that can send shares even higher in July 2024.

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 Fidelity National and Concentrix

The main advantage of trading using opposite Fidelity National and Concentrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National 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 Fidelity National Information 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..