Correlation Between Fidelity Capital and Voya High
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Voya High 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 Voya High 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 Voya High Yield, you can compare the effects of market volatilities on Fidelity Capital and Voya High 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 Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Voya High.
Diversification Opportunities for Fidelity Capital and Voya High
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and VOYA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Voya High go up and down completely randomly.
Pair Corralation between Fidelity Capital and Voya High
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 1.61 times more return on investment than Voya High. However, Fidelity Capital is 1.61 times more volatile than Voya High Yield. It trades about 0.1 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.1 per unit of risk. If you would invest 1,005 in Fidelity Capital Income on October 20, 2024 and sell it today you would earn a total of 21.00 from holding Fidelity Capital Income or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Voya High Yield
Performance |
| Timeline |
| Fidelity Capital Income |
| Voya High Yield |
Fidelity Capital and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Voya High
The main advantage of trading using opposite Fidelity Capital and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Voya High 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 Voya High will offset losses from the drop in Voya High'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 |
| Voya High vs. The Gold Bullion | Voya High vs. World Precious Minerals | Voya High vs. Great West Goldman Sachs | Voya High vs. Precious Metals And |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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