Correlation Between Dunham High and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Dunham High and Fidelity Managed 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 Dunham High and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dunham High Yield and Fidelity Managed Retirement, you can compare the effects of market volatilities on Dunham High and Fidelity Managed 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 Dunham High with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dunham High and Fidelity Managed.
Diversification Opportunities for Dunham High and Fidelity Managed
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dunham and Fidelity is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dunham High Yield and Fidelity Managed Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Managed Ret and Dunham High 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 Dunham High Yield are associated (or correlated) with Fidelity Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Managed Ret has no effect on the direction of Dunham High i.e., Dunham High and Fidelity Managed go up and down completely randomly.
Pair Corralation between Dunham High and Fidelity Managed
Assuming the 90 days horizon Dunham High is expected to generate 2.92 times less return on investment than Fidelity Managed. But when comparing it to its historical volatility, Dunham High Yield is 1.54 times less risky than Fidelity Managed. It trades about 0.14 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 5,573 in Fidelity Managed Retirement on November 28, 2024 and sell it today you would earn a total of 74.00 from holding Fidelity Managed Retirement or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dunham High Yield vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Dunham High Yield |
| Fidelity Managed Ret |
Dunham High and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dunham High and Fidelity Managed
The main advantage of trading using opposite Dunham High and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dunham High position performs unexpectedly, Fidelity Managed 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 Managed will offset losses from the drop in Fidelity Managed's long position.| Dunham High vs. United Kingdom Small | Dunham High vs. Small Pany Growth | Dunham High vs. Nt International Small Mid | Dunham High vs. Touchstone Small Cap |
| Fidelity Managed vs. Ab Bond Inflation | Fidelity Managed vs. Inflation Linked Fixed Income | Fidelity Managed vs. Tiaa Cref Inflation Link | Fidelity Managed vs. Ab Bond Inflation |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |