Correlation Between Fidelity National and Stewart Information
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Stewart Information 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 Stewart Information 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 Stewart Information Services, you can compare the effects of market volatilities on Fidelity National and Stewart Information 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 Stewart Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Stewart Information.
Diversification Opportunities for Fidelity National and Stewart Information
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Stewart is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Financial and Stewart Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stewart Information 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 Stewart Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stewart Information has no effect on the direction of Fidelity National i.e., Fidelity National and Stewart Information go up and down completely randomly.
Pair Corralation between Fidelity National and Stewart Information
Considering the 90-day investment horizon Fidelity National is expected to generate 1.78 times less return on investment than Stewart Information. But when comparing it to its historical volatility, Fidelity National Financial is 1.42 times less risky than Stewart Information. It trades about 0.1 of its potential returns per unit of risk. Stewart Information Services is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,249 in Stewart Information Services on June 11, 2025 and sell it today you would earn a total of 1,119 from holding Stewart Information Services or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Fidelity National Financial vs. Stewart Information Services
Performance |
| Timeline |
| Fidelity National |
| Stewart Information |
Fidelity National and Stewart Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity National and Stewart Information
The main advantage of trading using opposite Fidelity National and Stewart Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Stewart Information 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 Stewart Information will offset losses from the drop in Stewart Information's long position.| Fidelity National vs. First American | Fidelity National vs. Assurant | Fidelity National vs. NMI Holdings | Fidelity National vs. MGIC Investment Corp |
| Stewart Information vs. Horace Mann Educators | Stewart Information vs. Selective Insurance Group | Stewart Information vs. Argo Group International | Stewart Information vs. Global Indemnity PLC |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| 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 | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |