Correlation Between Fidelity National and Clearwater Paper

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Clearwater Paper 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 Clearwater Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Financial and Clearwater Paper Corp, you can compare the effects of market volatilities on Fidelity National and Clearwater Paper 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 Clearwater Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Clearwater Paper.

Diversification Opportunities for Fidelity National and Clearwater Paper

0.22
  Correlation Coefficient

Modest diversification

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

Pair Corralation between Fidelity National and Clearwater Paper

Considering the 90-day investment horizon Fidelity National Financial is expected to generate 0.61 times more return on investment than Clearwater Paper. However, Fidelity National Financial is 1.65 times less risky than Clearwater Paper. It trades about 0.03 of its potential returns per unit of risk. Clearwater Paper Corp is currently generating about 0.01 per unit of risk. If you would invest  3,594  in Fidelity National Financial on August 28, 2022 and sell it today you would earn a total of  476.00  from holding Fidelity National Financial or generate 13.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fidelity National Financial  vs.  Clearwater Paper Corp

 Performance (%) 
       Timeline  
Fidelity National 
Fidelity Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity National Financial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Fidelity National is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Fidelity Price Channel

Clearwater Paper Corp 
Clearwater Performance
0 of 100
Over the last 90 days Clearwater Paper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Clearwater Price Channel

Fidelity National and Clearwater Paper Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity National and Clearwater Paper

The main advantage of trading using opposite Fidelity National and Clearwater Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Clearwater Paper 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 Clearwater Paper will offset losses from the drop in Clearwater Paper's long position.
Fidelity National vs. Agnc Investment Corp
Fidelity National vs. Ally Financial
Fidelity National vs. Affiliated Managers Group
Fidelity National vs. Ameriprise Financial Services
The idea behind Fidelity National Financial and Clearwater Paper Corp 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.
Clearwater Paper vs. Holmen 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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go