Correlation Between Aqr Large and Fidelity Salem
Can any of the company-specific risk be diversified away by investing in both Aqr Large 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 Aqr Large and Fidelity Salem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Large Cap and Fidelity Salem Street, you can compare the effects of market volatilities on Aqr Large 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 Aqr Large with a short position of Fidelity Salem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Large and Fidelity Salem.
Diversification Opportunities for Aqr Large and Fidelity Salem
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aqr and Fidelity is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Large Cap 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 Aqr Large 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 Aqr Large Cap 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 Aqr Large i.e., Aqr Large and Fidelity Salem go up and down completely randomly.
Pair Corralation between Aqr Large and Fidelity Salem
Assuming the 90 days horizon Aqr Large Cap is expected to under-perform the Fidelity Salem. In addition to that, Aqr Large is 1.6 times more volatile than Fidelity Salem Street. It trades about -0.01 of its total potential returns per unit of risk. Fidelity Salem Street is currently generating about 0.02 per unit of volatility. If you would invest 1,091 in Fidelity Salem Street on January 9, 2025 and sell it today you would earn a total of 65.00 from holding Fidelity Salem Street or generate 5.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Large Cap vs. Fidelity Salem Street
Performance |
| Timeline |
| Aqr Large Cap |
| Fidelity Salem Street |
Aqr Large and Fidelity Salem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Large and Fidelity Salem
The main advantage of trading using opposite Aqr Large and Fidelity Salem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Large 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.| Aqr Large vs. Nuveen Global Real | Aqr Large vs. Scharf Global Opportunity | Aqr Large vs. Franklin Mutual Global | Aqr Large vs. Tweedy Browne Global |
| Fidelity Salem vs. Federated Municipal Ultrashort | Fidelity Salem vs. Ft 9331 Corporate | Fidelity Salem vs. Ab Bond Inflation | Fidelity Salem vs. Intermediate Term Bond Fund |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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