Correlation Between Fidelity Capital and Grant Park
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Grant Park 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 Grant Park 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 Grant Park Multi, you can compare the effects of market volatilities on Fidelity Capital and Grant Park 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 Grant Park. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Grant Park.
Diversification Opportunities for Fidelity Capital and Grant Park
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Grant is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Grant Park Multi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grant Park Multi 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 Grant Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grant Park Multi has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Grant Park go up and down completely randomly.
Pair Corralation between Fidelity Capital and Grant Park
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 1.1 times more return on investment than Grant Park. However, Fidelity Capital is 1.1 times more volatile than Grant Park Multi. It trades about 0.35 of its potential returns per unit of risk. Grant Park Multi is currently generating about 0.27 per unit of risk. If you would invest 1,016 in Fidelity Capital Income on September 4, 2024 and sell it today you would earn a total of 21.00 from holding Fidelity Capital Income or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Grant Park Multi
Performance |
| Timeline |
| Fidelity Capital Income |
| Grant Park Multi |
Fidelity Capital and Grant Park Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Grant Park
The main advantage of trading using opposite Fidelity Capital and Grant Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Grant Park 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 Grant Park will offset losses from the drop in Grant Park'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 |
| Grant Park vs. Dunham Large Cap | Grant Park vs. Vela Large Cap | Grant Park vs. Qs Large Cap | Grant Park vs. Siit Large Cap |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |