Correlation Between Ab Impact and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Ab Impact and Fidelity Salem 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 Ab Impact and Fidelity Salem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Impact Municipal and Fidelity Salem Street, you can compare the effects of market volatilities on Ab Impact and Fidelity Salem 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 Ab Impact with a short position of Fidelity Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Impact and Fidelity Salem.
Diversification Opportunities for Ab Impact and Fidelity Salem
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ABIMX and Fidelity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ab Impact Municipal and Fidelity Salem Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Salem Street and Ab Impact 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 Ab Impact Municipal are associated (or correlated) with Fidelity Salem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Salem Street has no effect on the direction of Ab Impact i.e., Ab Impact and Fidelity Salem go up and down completely randomly.
Pair Corralation between Ab Impact and Fidelity Salem
Assuming the 90 days horizon Ab Impact Municipal is expected to generate 0.82 times more return on investment than Fidelity Salem. However, Ab Impact Municipal is 1.22 times less risky than Fidelity Salem. It trades about 0.44 of its potential returns per unit of risk. Fidelity Salem Street is currently generating about 0.33 per unit of risk. If you would invest 985.00 in Ab Impact Municipal on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Ab Impact Municipal or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Impact Municipal vs. Fidelity Salem Street
Performance |
| Timeline |
| Ab Impact Municipal |
| Fidelity Salem Street |
Ab Impact and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Impact and Fidelity Salem
The main advantage of trading using opposite Ab Impact and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Impact position performs unexpectedly, Fidelity Salem 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 Salem will offset losses from the drop in Fidelity Salem's long position.| Ab Impact vs. SCOR PK | Ab Impact vs. Morningstar Unconstrained Allocation | Ab Impact vs. Thrivent High Yield | Ab Impact vs. Via Renewables |
| Fidelity Salem vs. Rbc Emerging Markets | Fidelity Salem vs. Ashmore Emerging Markets | Fidelity Salem vs. Doubleline Emerging Markets | Fidelity Salem vs. Pnc Emerging Markets |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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