Correlation Between Fidelity Value and Fidelity Capital
Can any of the company-specific risk be diversified away by investing in both Fidelity Value and Fidelity Capital 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 Value and Fidelity Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Value Fund and Fidelity Capital Appreciation, you can compare the effects of market volatilities on Fidelity Value and Fidelity Capital 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 Value with a short position of Fidelity Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Value and Fidelity Capital.
Diversification Opportunities for Fidelity Value and Fidelity Capital
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and Fidelity is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Value Fund and Fidelity Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Capital App and Fidelity Value 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 Value Fund are associated (or correlated) with Fidelity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Capital App has no effect on the direction of Fidelity Value i.e., Fidelity Value and Fidelity Capital go up and down completely randomly.
Pair Corralation between Fidelity Value and Fidelity Capital
Assuming the 90 days horizon Fidelity Value Fund is expected to under-perform the Fidelity Capital. In addition to that, Fidelity Value is 2.92 times more volatile than Fidelity Capital Appreciation. It trades about -0.27 of its total potential returns per unit of risk. Fidelity Capital Appreciation is currently generating about -0.07 per unit of volatility. If you would invest 4,349 in Fidelity Capital Appreciation on October 11, 2024 and sell it today you would lose (70.00) from holding Fidelity Capital Appreciation or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidelity Value Fund vs. Fidelity Capital Appreciation
Performance |
| Timeline |
| Fidelity Value |
| Fidelity Capital App |
Fidelity Value and Fidelity Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Value and Fidelity Capital
The main advantage of trading using opposite Fidelity Value and Fidelity Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Value position performs unexpectedly, Fidelity Capital 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 Fidelity Capital will offset losses from the drop in Fidelity Capital's long position.| Fidelity Value vs. Fidelity Mid Cap Stock | Fidelity Value vs. Fidelity Low Priced Stock | Fidelity Value vs. Fidelity Capital Appreciation | Fidelity Value vs. Fidelity Dividend Growth |
| Fidelity Capital vs. Fidelity Value Fund | Fidelity Capital vs. Fidelity Dividend Growth | Fidelity Capital vs. Fidelity Mid Cap Stock | Fidelity Capital vs. Fidelity Small Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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