Correlation Between Fidelity Growth and Fidelity Municipal
Can any of the company-specific risk be diversified away by investing in both Fidelity Growth and Fidelity Municipal 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 Growth and Fidelity Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Growth Strategies and Fidelity Municipal Income, you can compare the effects of market volatilities on Fidelity Growth and Fidelity Municipal 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 Growth with a short position of Fidelity Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Growth and Fidelity Municipal.
Diversification Opportunities for Fidelity Growth and Fidelity Municipal
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and FIDELITY is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Growth Strategies and Fidelity Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Municipal Income and Fidelity Growth 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 Growth Strategies are associated (or correlated) with Fidelity Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Municipal Income has no effect on the direction of Fidelity Growth i.e., Fidelity Growth and Fidelity Municipal go up and down completely randomly.
Pair Corralation between Fidelity Growth and Fidelity Municipal
Assuming the 90 days horizon Fidelity Growth Strategies is expected to generate 4.24 times more return on investment than Fidelity Municipal. However, Fidelity Growth is 4.24 times more volatile than Fidelity Municipal Income. It trades about 0.1 of its potential returns per unit of risk. Fidelity Municipal Income is currently generating about 0.07 per unit of risk. If you would invest 4,846 in Fidelity Growth Strategies on August 27, 2024 and sell it today you would earn a total of 2,953 from holding Fidelity Growth Strategies or generate 60.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Growth Strategies vs. Fidelity Municipal Income
Performance |
| Timeline |
| Fidelity Growth Stra |
| Fidelity Municipal Income |
Fidelity Growth and Fidelity Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Growth and Fidelity Municipal
The main advantage of trading using opposite Fidelity Growth and Fidelity Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Growth position performs unexpectedly, Fidelity Municipal 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 Fidelity Municipal will offset losses from the drop in Fidelity Municipal's long position.| Fidelity Growth vs. Fidelity Freedom 2015 | Fidelity Growth vs. Fidelity Puritan Fund | Fidelity Growth vs. Fidelity Puritan Fund | Fidelity Growth vs. Fidelity Pennsylvania Municipal |
| Fidelity Municipal vs. Qs Large Cap | Fidelity Municipal vs. Enhanced Large Pany | Fidelity Municipal vs. Federated Mdt Large | Fidelity Municipal vs. Quantitative U S |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |