Correlation Between Fidelity Asset and Fidelity Strategic
Can any of the company-specific risk be diversified away by investing in both Fidelity Asset and Fidelity Strategic 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 Asset and Fidelity Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Asset Manager and Fidelity Strategic Dividend, you can compare the effects of market volatilities on Fidelity Asset and Fidelity Strategic 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 Asset with a short position of Fidelity Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Asset and Fidelity Strategic.
Diversification Opportunities for Fidelity Asset and Fidelity Strategic
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Asset Manager and Fidelity Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Strategic and Fidelity Asset 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 Asset Manager are associated (or correlated) with Fidelity Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Strategic has no effect on the direction of Fidelity Asset i.e., Fidelity Asset and Fidelity Strategic go up and down completely randomly.
Pair Corralation between Fidelity Asset and Fidelity Strategic
Assuming the 90 days horizon Fidelity Asset Manager is expected to generate 0.83 times more return on investment than Fidelity Strategic. However, Fidelity Asset Manager is 1.2 times less risky than Fidelity Strategic. It trades about 0.09 of its potential returns per unit of risk. Fidelity Strategic Dividend is currently generating about -0.08 per unit of risk. If you would invest 2,121 in Fidelity Asset Manager on September 12, 2024 and sell it today you would earn a total of 14.00 from holding Fidelity Asset Manager or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Asset Manager vs. Fidelity Strategic Dividend
Performance |
| Timeline |
| Fidelity Asset Manager |
| Fidelity Strategic |
Fidelity Asset and Fidelity Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Asset and Fidelity Strategic
The main advantage of trading using opposite Fidelity Asset and Fidelity Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Asset position performs unexpectedly, Fidelity Strategic 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 Strategic will offset losses from the drop in Fidelity Strategic's long position.| Fidelity Asset vs. Strategic Allocation Servative | Fidelity Asset vs. Strategic Allocation Aggressive | Fidelity Asset vs. Value Fund Investor | Fidelity Asset vs. International Growth Fund |
| Fidelity Strategic vs. Income Fund Of | Fidelity Strategic vs. Income Fund Of | Fidelity Strategic vs. Income Fund Of | Fidelity Strategic vs. Income Fund Of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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