Correlation Between Fidelity Asset and Fidelity Overseas
Can any of the company-specific risk be diversified away by investing in both Fidelity Asset and Fidelity Overseas 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 Asset and Fidelity Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Asset Manager and Fidelity Overseas Fund, you can compare the effects of market volatilities on Fidelity Asset and Fidelity Overseas 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 Asset with a short position of Fidelity Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Asset and Fidelity Overseas.
Diversification Opportunities for Fidelity Asset and Fidelity Overseas
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Asset Manager and Fidelity Overseas Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Overseas and Fidelity Asset 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 Asset Manager are associated (or correlated) with Fidelity Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Overseas has no effect on the direction of Fidelity Asset i.e., Fidelity Asset and Fidelity Overseas go up and down completely randomly.
Pair Corralation between Fidelity Asset and Fidelity Overseas
Assuming the 90 days horizon Fidelity Asset is expected to generate 3.55 times less return on investment than Fidelity Overseas. But when comparing it to its historical volatility, Fidelity Asset Manager is 2.85 times less risky than Fidelity Overseas. It trades about 0.12 of its potential returns per unit of risk. Fidelity Overseas Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,598 in Fidelity Overseas Fund on November 29, 2024 and sell it today you would earn a total of 153.00 from holding Fidelity Overseas Fund or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Asset Manager vs. Fidelity Overseas Fund
Performance |
| Timeline |
| Fidelity Asset Manager |
| Fidelity Overseas |
Fidelity Asset and Fidelity Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Asset and Fidelity Overseas
The main advantage of trading using opposite Fidelity Asset and Fidelity Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Asset position performs unexpectedly, Fidelity Overseas 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 Overseas will offset losses from the drop in Fidelity Overseas' long position.| Fidelity Asset vs. Fidelity Asset Manager | Fidelity Asset vs. Fidelity Asset Manager | Fidelity Asset vs. Fidelity Asset Manager | Fidelity Asset vs. Fidelity Government Income |
| Fidelity Overseas vs. Fidelity Equity Income Fund | Fidelity Overseas vs. Fidelity Europe Fund | Fidelity Overseas vs. Fidelity Pacific Basin | Fidelity Overseas vs. Fidelity International Capital |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |