Correlation Between Fidelity Contrafund and Keeley Small
Can any of the company-specific risk be diversified away by investing in both Fidelity Contrafund and Keeley Small 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 Keeley Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Contrafund and Keeley Small Cap, you can compare the effects of market volatilities on Fidelity Contrafund and Keeley Small 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 Keeley Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Contrafund and Keeley Small.
Diversification Opportunities for Fidelity Contrafund and Keeley Small
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Keeley is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Contrafund and Keeley Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeley Small Cap 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 Keeley Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeley Small Cap has no effect on the direction of Fidelity Contrafund i.e., Fidelity Contrafund and Keeley Small go up and down completely randomly.
Pair Corralation between Fidelity Contrafund and Keeley Small
Assuming the 90 days horizon Fidelity Contrafund is expected to generate 0.83 times more return on investment than Keeley Small. However, Fidelity Contrafund is 1.2 times less risky than Keeley Small. It trades about 0.14 of its potential returns per unit of risk. Keeley Small Cap is currently generating about 0.09 per unit of risk. If you would invest 1,358 in Fidelity Contrafund on August 29, 2024 and sell it today you would earn a total of 823.00 from holding Fidelity Contrafund or generate 60.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Contrafund vs. Keeley Small Cap
Performance |
| Timeline |
| Fidelity Contrafund |
| Keeley Small Cap |
Fidelity Contrafund and Keeley Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Contrafund and Keeley Small
The main advantage of trading using opposite Fidelity Contrafund and Keeley Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Contrafund position performs unexpectedly, Keeley Small 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 Keeley Small will offset losses from the drop in Keeley Small'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 |
| Keeley Small vs. Vanguard Global Credit | Keeley Small vs. The Hartford Global | Keeley Small vs. Rbb Fund Trust | Keeley Small vs. T Rowe Price |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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