Correlation Between Fidelity Contrafund and Hanlon Tactical
Can any of the company-specific risk be diversified away by investing in both Fidelity Contrafund and Hanlon Tactical 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 Hanlon Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Contrafund and Hanlon Tactical Dividend, you can compare the effects of market volatilities on Fidelity Contrafund and Hanlon Tactical 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 Hanlon Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Contrafund and Hanlon Tactical.
Diversification Opportunities for Fidelity Contrafund and Hanlon Tactical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Hanlon is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Contrafund and Hanlon Tactical Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanlon Tactical Dividend 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 Contrafund are associated (or correlated) with Hanlon Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanlon Tactical Dividend has no effect on the direction of Fidelity Contrafund i.e., Fidelity Contrafund and Hanlon Tactical go up and down completely randomly.
Pair Corralation between Fidelity Contrafund and Hanlon Tactical
Assuming the 90 days horizon Fidelity Contrafund is expected to generate 1.33 times more return on investment than Hanlon Tactical. However, Fidelity Contrafund is 1.33 times more volatile than Hanlon Tactical Dividend. It trades about 0.13 of its potential returns per unit of risk. Hanlon Tactical Dividend is currently generating about 0.11 per unit of risk. If you would invest 1,609 in Fidelity Contrafund on September 14, 2024 and sell it today you would earn a total of 584.00 from holding Fidelity Contrafund or generate 36.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fidelity Contrafund vs. Hanlon Tactical Dividend
Performance |
| Timeline |
| Fidelity Contrafund |
| Hanlon Tactical Dividend |
Fidelity Contrafund and Hanlon Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Contrafund and Hanlon Tactical
The main advantage of trading using opposite Fidelity Contrafund and Hanlon Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Contrafund position performs unexpectedly, Hanlon Tactical 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 Hanlon Tactical will offset losses from the drop in Hanlon Tactical's long position.| Fidelity Contrafund vs. Fidelity Low Priced Stock | Fidelity Contrafund vs. Fidelity Growth Pany | Fidelity Contrafund vs. Fidelity Magellan Fund | Fidelity Contrafund vs. Fidelity Diversified International |
| Hanlon Tactical vs. Hanlon Tactical Dividend | Hanlon Tactical vs. Hanlon Tactical Dividend | Hanlon Tactical vs. Hanlon Tactical Dividend | Hanlon Tactical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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