Correlation Between Fidelity Managed and American Funds
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and American Funds 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 Managed and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Managed Retirement and American Funds 2025, you can compare the effects of market volatilities on Fidelity Managed and American Funds 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 Managed with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and American Funds.
Diversification Opportunities for Fidelity Managed and American Funds
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and American is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and American Funds 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2025 and Fidelity Managed 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 Managed Retirement are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2025 has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and American Funds go up and down completely randomly.
Pair Corralation between Fidelity Managed and American Funds
Assuming the 90 days horizon Fidelity Managed is expected to generate 1.15 times less return on investment than American Funds. In addition to that, Fidelity Managed is 1.02 times more volatile than American Funds 2025. It trades about 0.17 of its total potential returns per unit of risk. American Funds 2025 is currently generating about 0.2 per unit of volatility. If you would invest 1,615 in American Funds 2025 on September 15, 2024 and sell it today you would earn a total of 19.00 from holding American Funds 2025 or generate 1.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. American Funds 2025
Performance |
| Timeline |
| Fidelity Managed Ret |
| American Funds 2025 |
Fidelity Managed and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and American Funds
The main advantage of trading using opposite Fidelity Managed and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Fidelity Managed vs. Wilmington Trust Retirement | Fidelity Managed vs. Blackrock Moderate Prepared | Fidelity Managed vs. Jpmorgan Smartretirement 2035 | Fidelity Managed vs. Putnman Retirement Ready |
| American Funds vs. Fidelity Managed Retirement | American Funds vs. Qs Moderate Growth | American Funds vs. Calvert Moderate Allocation | American Funds vs. Strategic Allocation Moderate |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |