Correlation Between Fidelity Contrafund and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Fidelity Contrafund and Eaton Vance 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 Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Contrafund and Eaton Vance California, you can compare the effects of market volatilities on Fidelity Contrafund and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Contrafund and Eaton Vance.
Diversification Opportunities for Fidelity Contrafund and Eaton Vance
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Eaton is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Contrafund and Eaton Vance California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance California 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance California has no effect on the direction of Fidelity Contrafund i.e., Fidelity Contrafund and Eaton Vance go up and down completely randomly.
Pair Corralation between Fidelity Contrafund and Eaton Vance
Assuming the 90 days horizon Fidelity Contrafund is expected to generate 2.04 times more return on investment than Eaton Vance. However, Fidelity Contrafund is 2.04 times more volatile than Eaton Vance California. It trades about 0.09 of its potential returns per unit of risk. Eaton Vance California is currently generating about 0.09 per unit of risk. If you would invest 2,134 in Fidelity Contrafund on August 24, 2024 and sell it today you would earn a total of 42.00 from holding Fidelity Contrafund or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity Contrafund vs. Eaton Vance California
Performance |
| Timeline |
| Fidelity Contrafund |
| Eaton Vance California |
Fidelity Contrafund and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Contrafund and Eaton Vance
The main advantage of trading using opposite Fidelity Contrafund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Contrafund position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. Jennison Natural Resources | Eaton Vance vs. Firsthand Alternative Energy | Eaton Vance vs. Franklin Natural Resources | Eaton Vance vs. Franklin Natural Resources |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |