Correlation Between Fidelity Balanced and Walden Smid
Can any of the company-specific risk be diversified away by investing in both Fidelity Balanced and Walden Smid 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 Walden Smid 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 Walden Smid Cap, you can compare the effects of market volatilities on Fidelity Balanced and Walden Smid 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 Walden Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Balanced and Walden Smid.
Diversification Opportunities for Fidelity Balanced and Walden Smid
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Walden is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Balanced Fund and Walden Smid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walden Smid Cap 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 Walden Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walden Smid Cap has no effect on the direction of Fidelity Balanced i.e., Fidelity Balanced and Walden Smid go up and down completely randomly.
Pair Corralation between Fidelity Balanced and Walden Smid
Assuming the 90 days horizon Fidelity Balanced Fund is expected to generate 0.62 times more return on investment than Walden Smid. However, Fidelity Balanced Fund is 1.62 times less risky than Walden Smid. It trades about 0.13 of its potential returns per unit of risk. Walden Smid Cap is currently generating about 0.08 per unit of risk. If you would invest 2,181 in Fidelity Balanced Fund on August 28, 2024 and sell it today you would earn a total of 855.00 from holding Fidelity Balanced Fund or generate 39.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fidelity Balanced Fund vs. Walden Smid Cap
Performance |
| Timeline |
| Fidelity Balanced |
| Walden Smid Cap |
Fidelity Balanced and Walden Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Balanced and Walden Smid
The main advantage of trading using opposite Fidelity Balanced and Walden Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Balanced position performs unexpectedly, Walden Smid 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 Walden Smid will offset losses from the drop in Walden Smid'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 |
| Walden Smid vs. Calvert Small Cap | Walden Smid vs. Calvert International Equity | Walden Smid vs. Champlain Mid Cap | Walden Smid vs. Aquagold International |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |