Correlation Between Six Circles and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Six Circles and Fidelity Puritan 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 Six Circles and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Circles Managed and Fidelity Puritan Fund, you can compare the effects of market volatilities on Six Circles and Fidelity Puritan 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 Six Circles with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Circles and Fidelity Puritan.
Diversification Opportunities for Six Circles and Fidelity Puritan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Six and Fidelity is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Six Circles Managed and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Six Circles 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 Six Circles Managed are associated (or correlated) with Fidelity Puritan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Puritan has no effect on the direction of Six Circles i.e., Six Circles and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Six Circles and Fidelity Puritan
Assuming the 90 days horizon Six Circles Managed is expected to generate 1.38 times more return on investment than Fidelity Puritan. However, Six Circles is 1.38 times more volatile than Fidelity Puritan Fund. It trades about 0.13 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.15 per unit of risk. If you would invest 2,049 in Six Circles Managed on August 30, 2024 and sell it today you would earn a total of 82.00 from holding Six Circles Managed or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Six Circles Managed vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Six Circles Managed |
| Fidelity Puritan |
Six Circles and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Circles and Fidelity Puritan
The main advantage of trading using opposite Six Circles and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Circles position performs unexpectedly, Fidelity Puritan 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 Puritan will offset losses from the drop in Fidelity Puritan's long position.| Six Circles vs. Ancorathelen Small Mid Cap | Six Circles vs. Qs Small Capitalization | Six Circles vs. Ab Small Cap | Six Circles vs. Chase Growth Fund |
| Fidelity Puritan vs. Fidelity Balanced Fund | Fidelity Puritan vs. Fidelity Magellan Fund | Fidelity Puritan vs. Fidelity Growth Income | Fidelity Puritan vs. Fidelity Equity Income 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |