Correlation Between Aquagold International and Fidelity Contrafund
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Fidelity Contrafund 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 Aquagold International and Fidelity Contrafund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Fidelity Contrafund, you can compare the effects of market volatilities on Aquagold International and Fidelity Contrafund 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 Aquagold International with a short position of Fidelity Contrafund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Fidelity Contrafund.
Diversification Opportunities for Aquagold International and Fidelity Contrafund
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aquagold and Fidelity is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Fidelity Contrafund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Contrafund and Aquagold International 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 Aquagold International are associated (or correlated) with Fidelity Contrafund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Contrafund has no effect on the direction of Aquagold International i.e., Aquagold International and Fidelity Contrafund go up and down completely randomly.
Pair Corralation between Aquagold International and Fidelity Contrafund
Given the investment horizon of 90 days Aquagold International is expected to generate 53.15 times more return on investment than Fidelity Contrafund. However, Aquagold International is 53.15 times more volatile than Fidelity Contrafund. It trades about 0.05 of its potential returns per unit of risk. Fidelity Contrafund is currently generating about 0.13 per unit of risk. If you would invest 25.00 in Aquagold International on November 19, 2024 and sell it today you would lose (24.96) from holding Aquagold International or give up 99.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aquagold International vs. Fidelity Contrafund
Performance |
| Timeline |
| Aquagold International |
| Fidelity Contrafund |
Aquagold International and Fidelity Contrafund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Fidelity Contrafund
The main advantage of trading using opposite Aquagold International and Fidelity Contrafund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Fidelity Contrafund 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 Contrafund will offset losses from the drop in Fidelity Contrafund's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Fidelity Contrafund vs. Fidelity Low Priced Stock | Fidelity Contrafund vs. Fidelity Growth Pany | Fidelity Contrafund vs. Fidelity Magellan Fund | Fidelity Contrafund vs. Fidelity Diversified International |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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