Correlation Between Champlain Small and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Champlain Small 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 Champlain Small and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Fidelity Series Real, you can compare the effects of market volatilities on Champlain Small 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 Champlain Small with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Fidelity Series.
Diversification Opportunities for Champlain Small and Fidelity Series
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Champlain and Fidelity is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Fidelity Series Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Real and Champlain Small 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 Champlain Small 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 Real has no effect on the direction of Champlain Small i.e., Champlain Small and Fidelity Series go up and down completely randomly.
Pair Corralation between Champlain Small and Fidelity Series
Assuming the 90 days horizon Champlain Small is expected to generate 1.31 times less return on investment than Fidelity Series. In addition to that, Champlain Small is 4.7 times more volatile than Fidelity Series Real. It trades about 0.02 of its total potential returns per unit of risk. Fidelity Series Real is currently generating about 0.15 per unit of volatility. If you would invest 841.00 in Fidelity Series Real on November 28, 2024 and sell it today you would earn a total of 162.00 from holding Fidelity Series Real or generate 19.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Champlain Small vs. Fidelity Series Real
Performance |
| Timeline |
| Champlain Small |
| Fidelity Series Real |
Champlain Small and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Fidelity Series
The main advantage of trading using opposite Champlain Small and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small 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.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Fidelity Series vs. Vanguard Intermediate Term Government | Fidelity Series vs. Us Government Securities | Fidelity Series vs. Us Government Securities | Fidelity Series vs. John Hancock Government |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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