Correlation Between Fidelity National and GDS Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity National and GDS Holdings 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 GDS Holdings 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 GDS Holdings, you can compare the effects of market volatilities on Fidelity National and GDS Holdings 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 GDS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and GDS Holdings.

Diversification Opportunities for Fidelity National and GDS Holdings

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Fidelity and GDS is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and GDS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDS Holdings 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 GDS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDS Holdings has no effect on the direction of Fidelity National i.e., Fidelity National and GDS Holdings go up and down completely randomly.

Pair Corralation between Fidelity National and GDS Holdings

Considering the 90-day investment horizon Fidelity National is expected to generate 25.33 times less return on investment than GDS Holdings. But when comparing it to its historical volatility, Fidelity National Information is 3.38 times less risky than GDS Holdings. It trades about 0.01 of its potential returns per unit of risk. GDS Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,779  in GDS Holdings on May 5, 2025 and sell it today you would earn a total of  633.00  from holding GDS Holdings or generate 22.78% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Fidelity National Information  vs.  GDS Holdings

 Performance 
       Timeline  
Fidelity National 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
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.
GDS Holdings 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GDS Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, GDS Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Fidelity National and GDS Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity National and GDS Holdings

The main advantage of trading using opposite Fidelity National and GDS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, GDS Holdings 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 GDS Holdings will offset losses from the drop in GDS Holdings' long position.
The idea behind Fidelity National Information and GDS Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk