Correlation Between Fidelity National and Rollins
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Rollins 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 Rollins 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 Rollins, you can compare the effects of market volatilities on Fidelity National and Rollins 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 Rollins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Rollins.
Diversification Opportunities for Fidelity National and Rollins
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and Rollins is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Rollins in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rollins 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 Rollins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rollins has no effect on the direction of Fidelity National i.e., Fidelity National and Rollins go up and down completely randomly.
Pair Corralation between Fidelity National and Rollins
Assuming the 90 days horizon Fidelity National Information is expected to under-perform the Rollins. In addition to that, Fidelity National is 1.08 times more volatile than Rollins. It trades about -0.01 of its total potential returns per unit of risk. Rollins is currently generating about 0.0 per unit of volatility. If you would invest 4,772 in Rollins on April 24, 2025 and sell it today you would lose (20.00) from holding Rollins or give up 0.42% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity National Information vs. Rollins
Performance |
Timeline |
Fidelity National |
Rollins |
Fidelity National and Rollins Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity National and Rollins
The main advantage of trading using opposite Fidelity National and Rollins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Rollins 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 Rollins will offset losses from the drop in Rollins' long position.Fidelity National vs. Axcelis Technologies | Fidelity National vs. HELIOS TECHS INC | Fidelity National vs. S E BANKEN A | Fidelity National vs. SOFI TECHNOLOGIES |
Rollins vs. TAL Education Group | Rollins vs. American Public Education | Rollins vs. STRAYER EDUCATION | Rollins vs. EEDUCATION ALBERT AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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