Correlation Between Fidelity Asset and Fidelity Stock
Can any of the company-specific risk be diversified away by investing in both Fidelity Asset and Fidelity Stock 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 Fidelity Asset and Fidelity Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Asset Manager and Fidelity Stock Selector, you can compare the effects of market volatilities on Fidelity Asset and Fidelity Stock 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 Fidelity Asset with a short position of Fidelity Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Asset and Fidelity Stock.
Diversification Opportunities for Fidelity Asset and Fidelity Stock
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIDELITY and Fidelity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Asset Manager and Fidelity Stock Selector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Stock Selector and Fidelity Asset 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 Fidelity Asset Manager are associated (or correlated) with Fidelity Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Stock Selector has no effect on the direction of Fidelity Asset i.e., Fidelity Asset and Fidelity Stock go up and down completely randomly.
Pair Corralation between Fidelity Asset and Fidelity Stock
Assuming the 90 days horizon Fidelity Asset is expected to generate 3.78 times less return on investment than Fidelity Stock. But when comparing it to its historical volatility, Fidelity Asset Manager is 1.67 times less risky than Fidelity Stock. It trades about 0.1 of its potential returns per unit of risk. Fidelity Stock Selector is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 8,145 in Fidelity Stock Selector on August 26, 2024 and sell it today you would earn a total of 372.00 from holding Fidelity Stock Selector or generate 4.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Asset Manager vs. Fidelity Stock Selector
Performance |
| Timeline |
| Fidelity Asset Manager |
| Fidelity Stock Selector |
Fidelity Asset and Fidelity Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Asset and Fidelity Stock
The main advantage of trading using opposite Fidelity Asset and Fidelity Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Asset position performs unexpectedly, Fidelity Stock 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 Stock will offset losses from the drop in Fidelity Stock's long position.| Fidelity Asset vs. Fidelity Freedom 2015 | Fidelity Asset vs. Fidelity Puritan Fund | Fidelity Asset vs. Fidelity Puritan Fund | Fidelity Asset vs. Fidelity Pennsylvania Municipal |
| Fidelity Stock vs. Fidelity Disciplined Equity | Fidelity Stock vs. Fidelity Trend Fund | Fidelity Stock vs. Fidelity Stock Selector | Fidelity Stock vs. Ab Flexfee Thematic |
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
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets |