Correlation Between Ab Global and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Ab Global 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 Ab Global and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Global Real and Fidelity Puritan Fund, you can compare the effects of market volatilities on Ab Global 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 Ab Global with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Global and Fidelity Puritan.
Diversification Opportunities for Ab Global and Fidelity Puritan
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEEIX and Fidelity is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ab Global Real and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Ab Global 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 Global Real 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 Ab Global i.e., Ab Global and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Ab Global and Fidelity Puritan
Assuming the 90 days horizon Ab Global is expected to generate 2.53 times less return on investment than Fidelity Puritan. In addition to that, Ab Global is 1.56 times more volatile than Fidelity Puritan Fund. It trades about 0.1 of its total potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.4 per unit of volatility. If you would invest 2,472 in Fidelity Puritan Fund on September 4, 2024 and sell it today you would earn a total of 114.00 from holding Fidelity Puritan Fund or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ab Global Real vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Ab Global Real |
| Fidelity Puritan |
Ab Global and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Global and Fidelity Puritan
The main advantage of trading using opposite Ab Global and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Global 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.| Ab Global vs. Us Government Securities | Ab Global vs. Us Government Securities | Ab Global vs. Prudential Government Income | Ab Global vs. Dunham Porategovernment Bond |
| Fidelity Puritan vs. Fidelity Freedom 2015 | Fidelity Puritan vs. Fidelity Puritan Fund | Fidelity Puritan vs. Fidelity Pennsylvania Municipal | Fidelity Puritan vs. Fidelity Freedom Index |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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