Correlation Between Auer Growth and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Auer Growth and Fidelity International 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 Auer Growth and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Fidelity International Discovery, you can compare the effects of market volatilities on Auer Growth and Fidelity International 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 Auer Growth with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Fidelity International.
Diversification Opportunities for Auer Growth and Fidelity International
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Auer and Fidelity is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Fidelity International Discove in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and Auer Growth 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 Auer Growth Fund are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Auer Growth i.e., Auer Growth and Fidelity International go up and down completely randomly.
Pair Corralation between Auer Growth and Fidelity International
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.29 times more return on investment than Fidelity International. However, Auer Growth is 1.29 times more volatile than Fidelity International Discovery. It trades about 0.25 of its potential returns per unit of risk. Fidelity International Discovery is currently generating about 0.09 per unit of risk. If you would invest 1,680 in Auer Growth Fund on September 4, 2024 and sell it today you would earn a total of 86.00 from holding Auer Growth Fund or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Fidelity International Discove
Performance |
| Timeline |
| Auer Growth Fund |
| Fidelity International |
Auer Growth and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Fidelity International
The main advantage of trading using opposite Auer Growth and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Fidelity International vs. Balanced Fund Investor | Fidelity International vs. Rbb Fund | Fidelity International vs. Auer Growth Fund | Fidelity International vs. Small Cap Stock |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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