Correlation Between Fidelity Info and EQUINOR ASA

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

Diversification Opportunities for Fidelity Info and EQUINOR ASA

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Fidelity and EQUINOR is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Info Tech and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA and Fidelity Info 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 Info Tech are associated (or correlated) with EQUINOR ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Fidelity Info i.e., Fidelity Info and EQUINOR ASA go up and down completely randomly.

Pair Corralation between Fidelity Info and EQUINOR ASA

Given the investment horizon of 90 days Fidelity Info Tech is expected to generate 0.83 times more return on investment than EQUINOR ASA. However, Fidelity Info Tech is 1.21 times less risky than EQUINOR ASA. It trades about -0.03 of its potential returns per unit of risk. EQUINOR ASA is currently generating about -0.05 per unit of risk. If you would invest  10,380  in Fidelity Info Tech on March 27, 2022 and sell it today you would lose (210.00)  from holding Fidelity Info Tech or give up 2.02% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Fidelity Info Tech  vs.  EQUINOR ASA

 Performance (%) 
      Timeline 
Fidelity Info Tech 
Fidelity Performance
0 of 100
Over the last 90 days Fidelity Info Tech has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Fidelity Price Channel

EQUINOR ASA 
EQUINOR Performance
0 of 100
Over the last 90 days EQUINOR ASA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, EQUINOR ASA is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0233
Payout Ratio
0.5
Forward Annual Dividend Rate
0.8
Ex Dividend Date
2022-08-11

EQUINOR Price Channel

Fidelity Info and EQUINOR ASA Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Fidelity Info and EQUINOR ASA

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

Fidelity Info Tech

Pair trading matchups for Fidelity Info

SP 500 vs. Fidelity Info
Genie Energy vs. Fidelity Info
Ally Financial vs. Fidelity Info
Infineon Tech vs. Fidelity Info
Kar Auction vs. Fidelity Info
BERKSHIRE HATHAWAY vs. Fidelity Info
Upstart Holdings vs. Fidelity Info
Li-Cycle Holdings vs. Fidelity Info
DB Commodity vs. Fidelity Info
Concrete Pumping vs. Fidelity Info
Coinbase Global vs. Fidelity Info
Microchip Technology vs. Fidelity Info
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Fidelity Info as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Fidelity Info's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Fidelity Info's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Fidelity Info Tech.
The idea behind Fidelity Info Tech and EQUINOR ASA 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.

EQUINOR ASA

Pair trading matchups for EQUINOR ASA

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 CEO Directory module to screen CEOs from public companies around the world.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go