Correlation Between Fidelity New and Franklin Emerging
Can any of the company-specific risk be diversified away by investing in both Fidelity New and Franklin Emerging 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 New and Franklin Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity New Markets and Franklin Emerging Market, you can compare the effects of market volatilities on Fidelity New and Franklin Emerging 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 New with a short position of Franklin Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Franklin Emerging.
Diversification Opportunities for Fidelity New and Franklin Emerging
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Franklin is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Franklin Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Emerging Market and Fidelity New 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 New Markets are associated (or correlated) with Franklin Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Emerging Market has no effect on the direction of Fidelity New i.e., Fidelity New and Franklin Emerging go up and down completely randomly.
Pair Corralation between Fidelity New and Franklin Emerging
Assuming the 90 days horizon Fidelity New is expected to generate 1.17 times less return on investment than Franklin Emerging. In addition to that, Fidelity New is 1.45 times more volatile than Franklin Emerging Market. It trades about 0.19 of its total potential returns per unit of risk. Franklin Emerging Market is currently generating about 0.33 per unit of volatility. If you would invest 1,161 in Franklin Emerging Market on November 6, 2024 and sell it today you would earn a total of 15.00 from holding Franklin Emerging Market or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity New Markets vs. Franklin Emerging Market
Performance |
| Timeline |
| Fidelity New Markets |
| Franklin Emerging Market |
Fidelity New and Franklin Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and Franklin Emerging
The main advantage of trading using opposite Fidelity New and Franklin Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New position performs unexpectedly, Franklin Emerging 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 Franklin Emerging will offset losses from the drop in Franklin Emerging's long position.| Fidelity New vs. Alger Health Sciences | Fidelity New vs. Hartford Healthcare Hls | Fidelity New vs. Highland Longshort Healthcare | Fidelity New vs. Health Care Ultrasector |
| Franklin Emerging vs. Hsbc Treasury Money | Franklin Emerging vs. Dws Government Money | Franklin Emerging vs. Aig Government Money | Franklin Emerging vs. Franklin Government Money |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |