Correlation Between Fidelity Balanced and Fs Multi
Can any of the company-specific risk be diversified away by investing in both Fidelity Balanced and Fs Multi 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 Balanced and Fs Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Balanced Fund and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Fidelity Balanced and Fs Multi 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 Balanced with a short position of Fs Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Balanced and Fs Multi.
Diversification Opportunities for Fidelity Balanced and Fs Multi
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and FSMMX is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Balanced Fund and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Fidelity Balanced 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 Balanced Fund are associated (or correlated) with Fs Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Fidelity Balanced i.e., Fidelity Balanced and Fs Multi go up and down completely randomly.
Pair Corralation between Fidelity Balanced and Fs Multi
Assuming the 90 days horizon Fidelity Balanced Fund is expected to generate 3.71 times more return on investment than Fs Multi. However, Fidelity Balanced is 3.71 times more volatile than Fs Multi Strategy Alt. It trades about 0.11 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.11 per unit of risk. If you would invest 2,215 in Fidelity Balanced Fund on August 26, 2024 and sell it today you would earn a total of 814.00 from holding Fidelity Balanced Fund or generate 36.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Balanced Fund vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Fidelity Balanced |
| Fs Multi Strategy |
Fidelity Balanced and Fs Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Balanced and Fs Multi
The main advantage of trading using opposite Fidelity Balanced and Fs Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Balanced position performs unexpectedly, Fs Multi 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 Fs Multi will offset losses from the drop in Fs Multi's long position.| Fidelity Balanced vs. Fidelity Puritan Fund | Fidelity Balanced vs. Fidelity Low Priced Stock | Fidelity Balanced vs. Fidelity International Discovery | Fidelity Balanced vs. Fidelity Contrafund |
| Fs Multi vs. Fs Real Asset | Fs Multi vs. Fs Real Asset | Fs Multi vs. Fidelity Balanced Fund | Fs Multi vs. Fidelity Contrafund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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