Correlation Between Baird Strategic and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Baird Strategic and Fidelity Series 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 Baird Strategic and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Strategic Municipal and Fidelity Series International, you can compare the effects of market volatilities on Baird Strategic and Fidelity Series 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 Baird Strategic with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Strategic and Fidelity Series.
Diversification Opportunities for Baird Strategic and Fidelity Series
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Baird and Fidelity is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Baird Strategic Municipal and Fidelity Series International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Inte and Baird Strategic 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 Baird Strategic Municipal are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Inte has no effect on the direction of Baird Strategic i.e., Baird Strategic and Fidelity Series go up and down completely randomly.
Pair Corralation between Baird Strategic and Fidelity Series
Assuming the 90 days horizon Baird Strategic is expected to generate 2.48 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Baird Strategic Municipal is 5.26 times less risky than Fidelity Series. It trades about 0.19 of its potential returns per unit of risk. Fidelity Series International is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,850 in Fidelity Series International on November 29, 2024 and sell it today you would earn a total of 26.00 from holding Fidelity Series International or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Strategic Municipal vs. Fidelity Series International
Performance |
| Timeline |
| Baird Strategic Municipal |
| Fidelity Series Inte |
Baird Strategic and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Strategic and Fidelity Series
The main advantage of trading using opposite Baird Strategic and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Strategic position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Baird Strategic vs. Intermediate Term Bond Fund | Baird Strategic vs. Morningstar Defensive Bond | Baird Strategic vs. Ambrus Core Bond | Baird Strategic vs. Versatile Bond Portfolio |
| Fidelity Series vs. Aqr Managed Futures | Fidelity Series vs. Tiaa Cref Inflation Link | Fidelity Series vs. Nationwide Inflation Protected Securities | Fidelity Series vs. Inflation Linked Fixed Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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