Correlation Between Fidelity Asset and Fidelity Pacific
Can any of the company-specific risk be diversified away by investing in both Fidelity Asset and Fidelity Pacific 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 Pacific 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 Pacific Basin, you can compare the effects of market volatilities on Fidelity Asset and Fidelity Pacific 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 Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Asset and Fidelity Pacific.
Diversification Opportunities for Fidelity Asset and Fidelity Pacific
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Asset Manager and Fidelity Pacific Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Pacific Basin 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 Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Pacific Basin has no effect on the direction of Fidelity Asset i.e., Fidelity Asset and Fidelity Pacific go up and down completely randomly.
Pair Corralation between Fidelity Asset and Fidelity Pacific
Assuming the 90 days horizon Fidelity Asset Manager is expected to generate 0.55 times more return on investment than Fidelity Pacific. However, Fidelity Asset Manager is 1.83 times less risky than Fidelity Pacific. It trades about 0.09 of its potential returns per unit of risk. Fidelity Pacific Basin is currently generating about 0.02 per unit of risk. If you would invest 2,266 in Fidelity Asset Manager on August 26, 2024 and sell it today you would earn a total of 628.00 from holding Fidelity Asset Manager or generate 27.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Asset Manager vs. Fidelity Pacific Basin
Performance |
| Timeline |
| Fidelity Asset Manager |
| Fidelity Pacific Basin |
Fidelity Asset and Fidelity Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Asset and Fidelity Pacific
The main advantage of trading using opposite Fidelity Asset and Fidelity Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Asset position performs unexpectedly, Fidelity Pacific 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 Pacific will offset losses from the drop in Fidelity Pacific'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 Pacific vs. Fidelity Europe Fund | Fidelity Pacific vs. Fidelity Japan Fund | Fidelity Pacific vs. Fidelity Emerging Asia | Fidelity Pacific vs. Fidelity Nordic 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |