Correlation Between Fidelity Contrafund and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Fidelity Contrafund and Nuveen Preferred 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 Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Contrafund and Nuveen Preferred And, you can compare the effects of market volatilities on Fidelity Contrafund and Nuveen Preferred 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 Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Contrafund and Nuveen Preferred.
Diversification Opportunities for Fidelity Contrafund and Nuveen Preferred
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Nuveen is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Contrafund and Nuveen Preferred And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred And 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 Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred And has no effect on the direction of Fidelity Contrafund i.e., Fidelity Contrafund and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Fidelity Contrafund and Nuveen Preferred
If you would invest 2,149 in Fidelity Contrafund on August 28, 2024 and sell it today you would earn a total of 32.00 from holding Fidelity Contrafund or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Fidelity Contrafund vs. Nuveen Preferred And
Performance |
| Timeline |
| Fidelity Contrafund |
| Nuveen Preferred And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity Contrafund and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Contrafund and Nuveen Preferred
The main advantage of trading using opposite Fidelity Contrafund and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Contrafund position performs unexpectedly, Nuveen Preferred 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 Nuveen Preferred will offset losses from the drop in Nuveen Preferred'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 |
| Nuveen Preferred vs. Invesco High Income | Nuveen Preferred vs. MFS Investment Grade | Nuveen Preferred vs. Eaton Vance National | Nuveen Preferred vs. Nuveen California Select |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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