Correlation Between Fidelity Series and Emerging Europe
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Emerging Europe 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 Series and Emerging Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Canada and Emerging Europe Fund, you can compare the effects of market volatilities on Fidelity Series and Emerging Europe 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 Series with a short position of Emerging Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Emerging Europe.
Diversification Opportunities for Fidelity Series and Emerging Europe
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Emerging is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Canada and Emerging Europe Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Europe and Fidelity Series 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 Series Canada are associated (or correlated) with Emerging Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Europe has no effect on the direction of Fidelity Series i.e., Fidelity Series and Emerging Europe go up and down completely randomly.
Pair Corralation between Fidelity Series and Emerging Europe
If you would invest 1,643 in Fidelity Series Canada on August 30, 2024 and sell it today you would earn a total of 57.00 from holding Fidelity Series Canada or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Fidelity Series Canada vs. Emerging Europe Fund
Performance |
| Timeline |
| Fidelity Series Canada |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity Series and Emerging Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Emerging Europe
The main advantage of trading using opposite Fidelity Series and Emerging Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Emerging Europe 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 Emerging Europe will offset losses from the drop in Emerging Europe's long position.| Fidelity Series vs. Fidelity Freedom 2015 | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Pennsylvania Municipal |
| Emerging Europe vs. Tekla Healthcare Opportunities | Emerging Europe vs. Health Biotchnology Portfolio | Emerging Europe vs. Alphacentric Lifesci Healthcare | Emerging Europe vs. Deutsche Health And |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |