Correlation Between Fidelity Capital and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Mairs Power 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 Mairs Power 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 Mairs Power Growth, you can compare the effects of market volatilities on Fidelity Capital and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Mairs Power.
Diversification Opportunities for Fidelity Capital and Mairs Power
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Mairs is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Mairs Power Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Growth 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Growth has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Mairs Power go up and down completely randomly.
Pair Corralation between Fidelity Capital and Mairs Power
Assuming the 90 days horizon Fidelity Capital is expected to generate 2.0 times less return on investment than Mairs Power. But when comparing it to its historical volatility, Fidelity Capital Income is 2.66 times less risky than Mairs Power. It trades about 0.14 of its potential returns per unit of risk. Mairs Power Growth is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 11,878 in Mairs Power Growth on August 29, 2024 and sell it today you would earn a total of 6,369 from holding Mairs Power Growth or generate 53.62% 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. Mairs Power Growth
Performance |
| Timeline |
| Fidelity Capital Income |
| Mairs Power Growth |
Fidelity Capital and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Mairs Power
The main advantage of trading using opposite Fidelity Capital and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power'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 |
| Mairs Power vs. Vanguard Total Stock | Mairs Power vs. Vanguard 500 Index | Mairs Power vs. Vanguard Total Stock | Mairs Power vs. Vanguard Total Stock |
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 Stocks Directory module to find actively traded stocks across global markets.
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