Correlation Between Fidelity Series and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Mainstay Large 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 Series and Mainstay Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Mainstay Large Cap, you can compare the effects of market volatilities on Fidelity Series and Mainstay Large 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 Series with a short position of Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Mainstay Large.
Diversification Opportunities for Fidelity Series and Mainstay Large
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Mainstay is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap and Fidelity Series 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 Series Government are associated (or correlated) with Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Fidelity Series i.e., Fidelity Series and Mainstay Large go up and down completely randomly.
Pair Corralation between Fidelity Series and Mainstay Large
Assuming the 90 days horizon Fidelity Series Government is expected to under-perform the Mainstay Large. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Series Government is 3.77 times less risky than Mainstay Large. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Mainstay Large Cap is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,312 in Mainstay Large Cap on August 26, 2024 and sell it today you would earn a total of 111.00 from holding Mainstay Large Cap or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Government vs. Mainstay Large Cap
Performance |
| Timeline |
| Fidelity Series Gove |
| Mainstay Large Cap |
Fidelity Series and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Mainstay Large
The main advantage of trading using opposite Fidelity Series and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large's long position.| Fidelity Series vs. Fidelity Short Term Treasury | Fidelity Series vs. Fidelity Inflation Protected Bond | Fidelity Series vs. Fidelity Long Term Treasury | Fidelity Series vs. Fidelity Emerging Markets |
| Mainstay Large vs. Lord Abbett Government | Mainstay Large vs. Fidelity Series Government | Mainstay Large vs. Dws Government Money | Mainstay Large vs. Inverse Government Long |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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