Correlation Between Fidelity New and Kopernik International
Can any of the company-specific risk be diversified away by investing in both Fidelity New and Kopernik International 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 Kopernik International 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 Kopernik International Fund, you can compare the effects of market volatilities on Fidelity New and Kopernik International 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 Kopernik International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Kopernik International.
Diversification Opportunities for Fidelity New and Kopernik International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and Kopernik is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Kopernik International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kopernik International 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 Kopernik International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kopernik International has no effect on the direction of Fidelity New i.e., Fidelity New and Kopernik International go up and down completely randomly.
Pair Corralation between Fidelity New and Kopernik International
Assuming the 90 days horizon Fidelity New Markets is expected to generate 0.48 times more return on investment than Kopernik International. However, Fidelity New Markets is 2.1 times less risky than Kopernik International. It trades about 0.11 of its potential returns per unit of risk. Kopernik International Fund is currently generating about -0.3 per unit of risk. If you would invest 1,270 in Fidelity New Markets on August 30, 2024 and sell it today you would earn a total of 11.00 from holding Fidelity New Markets or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity New Markets vs. Kopernik International Fund
Performance |
| Timeline |
| Fidelity New Markets |
| Kopernik International |
Fidelity New and Kopernik International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and Kopernik International
The main advantage of trading using opposite Fidelity New and Kopernik International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New position performs unexpectedly, Kopernik International 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 Kopernik International will offset losses from the drop in Kopernik International's long position.| Fidelity New vs. Tiaa Cref High Yield Fund | Fidelity New vs. Prudential High Yield | Fidelity New vs. Virtus High Yield | Fidelity New vs. Prudential High Yield |
| Kopernik International vs. HUMANA INC | Kopernik International vs. Aquagold International | Kopernik International vs. Barloworld Ltd ADR | Kopernik International vs. Morningstar Unconstrained Allocation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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