Correlation Between Fidelity National and CLPS

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

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

Diversification Opportunities for Fidelity National and CLPS

-0.37

Correlation Coefficient

Fidelity National  CLPS

Very good diversification

The 3 months correlation between Fidelity and CLPS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc 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 Information are associated (or correlated) with CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of Fidelity National i.e., Fidelity National and CLPS go up and down completely randomly.

Pair Corralation between Fidelity National and CLPS

Considering the 90-day investment horizon Fidelity National Information is expected to generate 0.45 times more return on investment than CLPS. However, Fidelity National Information is 2.21 times less risky than CLPS. It trades about 0.02 of its potential returns per unit of risk. CLPS Inc is currently generating about -0.05 per unit of risk. If you would invest  7,847  in Fidelity National Information on May 2, 2025 and sell it today you would earn a total of  94.00  from holding Fidelity National Information or generate 1.2% return on investment over 90 days.

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

Fidelity National Information  vs.  CLPS Inc

Fidelity National

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity National Information are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Fidelity National is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic 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 Fidelity National and CLPS

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

The idea behind Fidelity National Information and CLPS Inc 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.