Correlation Between Fidelity National and General Mills

Can any of the company-specific risk be diversified away by investing in both Fidelity National and General Mills 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 General Mills 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 General Mills, you can compare the effects of market volatilities on Fidelity National and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and General Mills.

Diversification Opportunities for Fidelity National and General Mills

-0.42

Correlation Coefficient

Fidelity National  General Mills

Very good diversification

The 3 months correlation between Fidelity and General is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Fidelity National i.e., Fidelity National and General Mills go up and down completely randomly.

Pair Corralation between Fidelity National and General Mills

Assuming the 90 days trading horizon Fidelity National Information is expected to generate 1.06 times more return on investment than General Mills. However, Fidelity National is 1.06 times more volatile than General Mills. It trades about 0.04 of its potential returns per unit of risk. General Mills is currently generating about -0.12 per unit of risk. If you would invest  6,842  in Fidelity National Information on March 27, 2025 and sell it today you would earn a total of  61.00  from holding Fidelity National Information or generate 0.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

Fidelity National Information  vs.  General Mills

Fidelity National

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity National Information are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Fidelity National is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

General Mills

Risk-Adjusted Performance

Very Weak

Over the last 90 days General Mills has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in July 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Fidelity National and General Mills

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

The idea behind Fidelity National Information and General Mills 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.