Correlation Between Fidelity Capital and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital and Old Westbury 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 Old Westbury 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 Old Westbury Credit, you can compare the effects of market volatilities on Fidelity Capital and Old Westbury 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 Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Old Westbury.
Diversification Opportunities for Fidelity Capital and Old Westbury
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Old is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Old Westbury Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Credit 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 Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Credit has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Old Westbury go up and down completely randomly.
Pair Corralation between Fidelity Capital and Old Westbury
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 0.68 times more return on investment than Old Westbury. However, Fidelity Capital Income is 1.46 times less risky than Old Westbury. It trades about 0.24 of its potential returns per unit of risk. Old Westbury Credit is currently generating about -0.15 per unit of risk. If you would invest 1,010 in Fidelity Capital Income on August 28, 2024 and sell it today you would earn a total of 24.00 from holding Fidelity Capital Income or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Old Westbury Credit
Performance |
| Timeline |
| Fidelity Capital Income |
| Old Westbury Credit |
Fidelity Capital and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Old Westbury
The main advantage of trading using opposite Fidelity Capital and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury'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 |
| Old Westbury vs. Old Westbury California | Old Westbury vs. Old Westbury Fixed | Old Westbury vs. Old Westbury Large | Old Westbury vs. Old Westbury Municipal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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