Correlation Between Fidelity Total and Icon Financial
Can any of the company-specific risk be diversified away by investing in both Fidelity Total and Icon Financial 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 Total and Icon Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Total Bond and Icon Financial Fund, you can compare the effects of market volatilities on Fidelity Total and Icon Financial 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 Total with a short position of Icon Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Total and Icon Financial.
Diversification Opportunities for Fidelity Total and Icon Financial
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Icon is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Total Bond and Icon Financial Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Financial and Fidelity Total 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 Total Bond are associated (or correlated) with Icon Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Financial has no effect on the direction of Fidelity Total i.e., Fidelity Total and Icon Financial go up and down completely randomly.
Pair Corralation between Fidelity Total and Icon Financial
Assuming the 90 days horizon Fidelity Total Bond is expected to generate 0.08 times more return on investment than Icon Financial. However, Fidelity Total Bond is 13.05 times less risky than Icon Financial. It trades about 0.18 of its potential returns per unit of risk. Icon Financial Fund is currently generating about -0.16 per unit of risk. If you would invest 948.00 in Fidelity Total Bond on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Fidelity Total Bond or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Total Bond vs. Icon Financial Fund
Performance |
| Timeline |
| Fidelity Total Bond |
| Icon Financial |
Fidelity Total and Icon Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Total and Icon Financial
The main advantage of trading using opposite Fidelity Total and Icon Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Total position performs unexpectedly, Icon Financial 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 Icon Financial will offset losses from the drop in Icon Financial's long position.| Fidelity Total vs. Dimensional Retirement Income | Fidelity Total vs. Deutsche Multi Asset Moderate | Fidelity Total vs. Franklin Lifesmart Retirement | Fidelity Total vs. Jpmorgan Smartretirement 2035 |
| Icon Financial vs. Locorr Market Trend | Icon Financial vs. Transamerica Emerging Markets | Icon Financial vs. Ashmore Emerging Markets | Icon Financial vs. Kinetics Market Opportunities |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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