Correlation Between Aston/crosswind Small and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Aston/crosswind Small and Fidelity Puritan 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 Aston/crosswind Small and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoncrosswind Small Cap and Fidelity Puritan Fund, you can compare the effects of market volatilities on Aston/crosswind Small and Fidelity Puritan 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 Aston/crosswind Small with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aston/crosswind Small and Fidelity Puritan.
Diversification Opportunities for Aston/crosswind Small and Fidelity Puritan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aston/crosswind and Fidelity is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Astoncrosswind Small Cap and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Aston/crosswind Small 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 Astoncrosswind Small Cap are associated (or correlated) with Fidelity Puritan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Puritan has no effect on the direction of Aston/crosswind Small i.e., Aston/crosswind Small and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Aston/crosswind Small and Fidelity Puritan
Assuming the 90 days horizon Astoncrosswind Small Cap is expected to generate 1.33 times more return on investment than Fidelity Puritan. However, Aston/crosswind Small is 1.33 times more volatile than Fidelity Puritan Fund. It trades about 0.07 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.07 per unit of risk. If you would invest 1,492 in Astoncrosswind Small Cap on November 5, 2024 and sell it today you would earn a total of 311.00 from holding Astoncrosswind Small Cap or generate 20.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoncrosswind Small Cap vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Astoncrosswind Small Cap |
| Fidelity Puritan |
Aston/crosswind Small and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aston/crosswind Small and Fidelity Puritan
The main advantage of trading using opposite Aston/crosswind Small and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aston/crosswind Small position performs unexpectedly, Fidelity Puritan 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 Puritan will offset losses from the drop in Fidelity Puritan's long position.| Aston/crosswind Small vs. Baron Real Estate | Aston/crosswind Small vs. Eventide Gilead Fund | Aston/crosswind Small vs. Buffalo Emerging Opportunities | Aston/crosswind Small vs. Large Cap Growth |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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