Correlation Between Positive Physicians and Fidelity National

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

Diversification Opportunities for Positive Physicians and Fidelity National

0.51
  Correlation Coefficient

Very weak diversification

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

Pair Corralation between Positive Physicians and Fidelity National

Given the investment horizon of 90 days Positive Physicians Holdings is expected to generate 5.01 times more return on investment than Fidelity National. However, Positive Physicians is 5.01 times more volatile than Fidelity National Financial. It trades about 0.03 of its potential returns per unit of risk. Fidelity National Financial is currently generating about 0.04 per unit of risk. If you would invest  1,143  in Positive Physicians Holdings on April 3, 2022 and sell it today you would lose (276.00)  from holding Positive Physicians Holdings or give up 24.15% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

Positive Physicians Holdings  vs.  Fidelity National Financial

 Performance (%) 
      Timeline 
Positive Physicians 
Positive Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Positive Physicians Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Positive Physicians reported solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Forward Annual Dividend Yield
0.26
Forward Annual Dividend Rate
2.21
Ex Dividend Date
2022-04-11

Positive Price Channel

Fidelity National 
Fidelity Performance
0 of 100
Over the last 90 days Fidelity National Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0476
Payout Ratio
0.22
Last Split Factor
1385:1000
Forward Annual Dividend Rate
1.76
Dividend Date
2022-06-30
Ex Dividend Date
2022-06-15
Last Split Date
2017-10-02

Fidelity Price Channel

Positive Physicians and Fidelity National Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Positive Physicians and Fidelity National

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

Positive Physicians Holdings

Pair trading matchups for Positive Physicians

The idea behind Positive Physicians Holdings and Fidelity National Financial 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.

Fidelity National Financial

Pair trading matchups for Fidelity National

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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