Correlation Between Fidelity Emerging and Fidelity Nordic
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging and Fidelity Nordic 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 Emerging and Fidelity Nordic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Emerging Markets and Fidelity Nordic Fund, you can compare the effects of market volatilities on Fidelity Emerging and Fidelity Nordic 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 Emerging with a short position of Fidelity Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Fidelity Nordic.
Diversification Opportunities for Fidelity Emerging and Fidelity Nordic
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Fidelity is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Markets and Fidelity Nordic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Nordic and Fidelity Emerging 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 Emerging Markets are associated (or correlated) with Fidelity Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Nordic has no effect on the direction of Fidelity Emerging i.e., Fidelity Emerging and Fidelity Nordic go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Fidelity Nordic
Assuming the 90 days horizon Fidelity Emerging Markets is expected to under-perform the Fidelity Nordic. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Emerging Markets is 1.28 times less risky than Fidelity Nordic. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Fidelity Nordic Fund is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 6,533 in Fidelity Nordic Fund on September 3, 2024 and sell it today you would lose (139.00) from holding Fidelity Nordic Fund or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Emerging Markets vs. Fidelity Nordic Fund
Performance |
| Timeline |
| Fidelity Emerging Markets |
| Fidelity Nordic |
Fidelity Emerging and Fidelity Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Fidelity Nordic
The main advantage of trading using opposite Fidelity Emerging and Fidelity Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging position performs unexpectedly, Fidelity Nordic 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 Nordic will offset losses from the drop in Fidelity Nordic's long position.| Fidelity Emerging vs. Fidelity Emerging Asia | Fidelity Emerging vs. Fidelity Canada Fund | Fidelity Emerging vs. Fidelity China Region | Fidelity Emerging vs. Fidelity Pacific Basin |
| Fidelity Nordic vs. Fidelity Investment Trust | Fidelity Nordic vs. Fidelity Europe Fund | Fidelity Nordic vs. Fidelity Emerging Asia | Fidelity Nordic vs. Fidelity Pacific Basin |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |