Correlation Between Fidelity Enduring and Fidelity Pacific
Can any of the company-specific risk be diversified away by investing in both Fidelity Enduring and Fidelity Pacific 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 Enduring and Fidelity Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Enduring Opportunities and Fidelity Pacific Basin, you can compare the effects of market volatilities on Fidelity Enduring and Fidelity Pacific 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 Enduring with a short position of Fidelity Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Enduring and Fidelity Pacific.
Diversification Opportunities for Fidelity Enduring and Fidelity Pacific
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Enduring Opportunitie and Fidelity Pacific Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Pacific Basin and Fidelity Enduring 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 Enduring Opportunities are associated (or correlated) with Fidelity Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Pacific Basin has no effect on the direction of Fidelity Enduring i.e., Fidelity Enduring and Fidelity Pacific go up and down completely randomly.
Pair Corralation between Fidelity Enduring and Fidelity Pacific
Assuming the 90 days horizon Fidelity Enduring Opportunities is expected to under-perform the Fidelity Pacific. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Enduring Opportunities is 1.12 times less risky than Fidelity Pacific. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Fidelity Pacific Basin is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,106 in Fidelity Pacific Basin on January 15, 2025 and sell it today you would lose (109.00) from holding Fidelity Pacific Basin or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Enduring Opportunitie vs. Fidelity Pacific Basin
Performance |
| Timeline |
| Fidelity Enduring |
| Fidelity Pacific Basin |
Fidelity Enduring and Fidelity Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Enduring and Fidelity Pacific
The main advantage of trading using opposite Fidelity Enduring and Fidelity Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Enduring position performs unexpectedly, Fidelity Pacific 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 Pacific will offset losses from the drop in Fidelity Pacific's long position.| Fidelity Enduring vs. Fidelity Founders | Fidelity Enduring vs. Fidelity Low Volatility | Fidelity Enduring vs. Fidelity Infrastructure | Fidelity Enduring vs. Fidelity Intl Sustainability |
| Fidelity Pacific vs. Fidelity Europe Fund | Fidelity Pacific vs. Fidelity Japan Fund | Fidelity Pacific vs. Fidelity Emerging Asia | Fidelity Pacific vs. Fidelity Nordic Fund |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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