Correlation Between Nayax and Fidelity National

Can any of the company-specific risk be diversified away by investing in both Nayax 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 Nayax and Fidelity National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nayax and Fidelity National Information, you can compare the effects of market volatilities on Nayax 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 Nayax with a short position of Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nayax and Fidelity National.

Diversification Opportunities for Nayax and Fidelity National

-0.41

Correlation Coefficient

Nayax  Fidelity National

Very good diversification

The 3 months correlation between Nayax and Fidelity is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nayax and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National and Nayax 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 Nayax 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 Nayax i.e., Nayax and Fidelity National go up and down completely randomly.

Pair Corralation between Nayax and Fidelity National

Given the investment horizon of 90 days Nayax is expected to generate 1.24 times more return on investment than Fidelity National. However, Nayax is 1.24 times more volatile than Fidelity National Information. It trades about 0.12 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.06 per unit of risk. If you would invest  2,871  in Nayax on December 29, 2024 and sell it today you would earn a total of  519.00  from holding Nayax or generate 18.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Nayax  vs.  Fidelity National Information

Nayax

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nayax are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Nayax showed solid returns over the last few months and may actually be approaching a breakup point.

Fidelity National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity National Information has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Nayax and Fidelity National

The main advantage of trading using opposite Nayax and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nayax 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.

The idea behind Nayax and Fidelity National Information 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.