Correlation Between Fiserv and Yamana Gold
Can any of the company-specific risk be diversified away by investing in both Fiserv and Yamana Gold 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 Fiserv and Yamana Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiserv Inc and Yamana Gold, you can compare the effects of market volatilities on Fiserv and Yamana Gold 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 Fiserv with a short position of Yamana Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiserv and Yamana Gold.
Diversification Opportunities for Fiserv and Yamana Gold
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiserv and Yamana is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fiserv Inc and Yamana Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yamana Gold and Fiserv 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 Fiserv Inc are associated (or correlated) with Yamana Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yamana Gold has no effect on the direction of Fiserv i.e., Fiserv and Yamana Gold go up and down completely randomly.
Pair Corralation between Fiserv and Yamana Gold
Given the investment horizon of 90 days Fiserv is expected to generate 1.25 times less return on investment than Yamana Gold. But when comparing it to its historical volatility, Fiserv Inc is 1.63 times less risky than Yamana Gold. It trades about 0.04 of its potential returns per unit of risk. Yamana Gold is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Yamana Gold on January 20, 2024 and sell it today you would earn a total of 65.00 from holding Yamana Gold or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 83.75% |
| Values | Daily Returns |
Fiserv Inc vs. Yamana Gold
Performance |
| Timeline |
| Fiserv Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fiserv and Yamana Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiserv and Yamana Gold
The main advantage of trading using opposite Fiserv and Yamana Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiserv position performs unexpectedly, Yamana Gold 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 Yamana Gold will offset losses from the drop in Yamana Gold's long position.| Fiserv vs. Jack Henry Associates | Fiserv vs. Cognizant Technology Solutions | Fiserv vs. CDW Corp | Fiserv vs. Broadridge Financial Solutions |
| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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