Correlation Between Fidelity Freedom and Boston Partners
Can any of the company-specific risk be diversified away by investing in both Fidelity Freedom and Boston Partners 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 Freedom and Boston Partners into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Freedom Index and Boston Partners Small, you can compare the effects of market volatilities on Fidelity Freedom and Boston Partners 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 Freedom with a short position of Boston Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Freedom and Boston Partners.
Diversification Opportunities for Fidelity Freedom and Boston Partners
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Boston is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Freedom Index and Boston Partners Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Partners Small and Fidelity Freedom 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 Freedom Index are associated (or correlated) with Boston Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Partners Small has no effect on the direction of Fidelity Freedom i.e., Fidelity Freedom and Boston Partners go up and down completely randomly.
Pair Corralation between Fidelity Freedom and Boston Partners
Assuming the 90 days horizon Fidelity Freedom Index is expected to generate 0.47 times more return on investment than Boston Partners. However, Fidelity Freedom Index is 2.12 times less risky than Boston Partners. It trades about 0.17 of its potential returns per unit of risk. Boston Partners Small is currently generating about 0.02 per unit of risk. If you would invest 2,556 in Fidelity Freedom Index on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Fidelity Freedom Index or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Freedom Index vs. Boston Partners Small
Performance |
| Timeline |
| Fidelity Freedom Index |
| Boston Partners Small |
Fidelity Freedom and Boston Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Freedom and Boston Partners
The main advantage of trading using opposite Fidelity Freedom and Boston Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Freedom position performs unexpectedly, Boston Partners 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 Boston Partners will offset losses from the drop in Boston Partners' long position.| Fidelity Freedom vs. Qs Moderate Growth | Fidelity Freedom vs. Franklin Lifesmart Retirement | Fidelity Freedom vs. College Retirement Equities | Fidelity Freedom vs. Putnman Retirement Ready |
| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Putnam Small Cap | Boston Partners vs. Dreyfus Strategic Value |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |