Correlation Between Fidelity Contrafund and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Fidelity Contrafund and Goldman Sachs 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 Contrafund and Goldman Sachs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Trafund Class and Goldman Sachs Centrated, you can compare the effects of market volatilities on Fidelity Contrafund and Goldman Sachs 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 Contrafund with a short position of Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Contrafund and Goldman Sachs.
Diversification Opportunities for Fidelity Contrafund and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Trafund Class and Goldman Sachs Centrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Centrated and Fidelity Contrafund 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 Trafund Class are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Centrated has no effect on the direction of Fidelity Contrafund i.e., Fidelity Contrafund and Goldman Sachs go up and down completely randomly.
Pair Corralation between Fidelity Contrafund and Goldman Sachs
If you would invest 2,111 in Fidelity Trafund Class on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Fidelity Trafund Class or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Trafund Class vs. Goldman Sachs Centrated
Performance |
| Timeline |
| Fidelity Trafund Class |
| Goldman Sachs Centrated |
Fidelity Contrafund and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Contrafund and Goldman Sachs
The main advantage of trading using opposite Fidelity Contrafund and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Contrafund position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Fidelity Contrafund vs. T Rowe Price | Fidelity Contrafund vs. Legg Mason Partners | Fidelity Contrafund vs. Kinetics Small Cap | Fidelity Contrafund vs. Jpmorgan Small Cap |
| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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