Correlation Between Fidelity Capital and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Bond Fund 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 Capital and Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Capital Income and Bond Fund Of, you can compare the effects of market volatilities on Fidelity Capital and Bond Fund 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 Capital with a short position of Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Bond Fund.
Diversification Opportunities for Fidelity Capital and Bond Fund
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Bond is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund and Fidelity Capital 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 Capital Income are associated (or correlated) with Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Bond Fund go up and down completely randomly.
Pair Corralation between Fidelity Capital and Bond Fund
Assuming the 90 days horizon Fidelity Capital Income is expected to under-perform the Bond Fund. In addition to that, Fidelity Capital is 1.85 times more volatile than Bond Fund Of. It trades about -0.2 of its total potential returns per unit of risk. Bond Fund Of is currently generating about -0.13 per unit of volatility. If you would invest 1,139 in Bond Fund Of on December 31, 2024 and sell it today you would lose (8.00) from holding Bond Fund Of or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Bond Fund Of
Performance |
| Timeline |
| Fidelity Capital Income |
| Bond Fund |
Fidelity Capital and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Bond Fund
The main advantage of trading using opposite Fidelity Capital and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced Fund |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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