Correlation Between Fidelity Managed and Core Plus
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and Core Plus 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 Core Plus 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 Core Plus Income, you can compare the effects of market volatilities on Fidelity Managed and Core Plus 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 Core Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Core Plus.
Diversification Opportunities for Fidelity Managed and Core Plus
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Core is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Core Plus Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Plus Income 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 Core Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Plus Income has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Core Plus go up and down completely randomly.
Pair Corralation between Fidelity Managed and Core Plus
Assuming the 90 days horizon Fidelity Managed Retirement is expected to generate 1.14 times more return on investment than Core Plus. However, Fidelity Managed is 1.14 times more volatile than Core Plus Income. It trades about 0.09 of its potential returns per unit of risk. Core Plus Income is currently generating about 0.06 per unit of risk. If you would invest 5,040 in Fidelity Managed Retirement on September 14, 2024 and sell it today you would earn a total of 439.00 from holding Fidelity Managed Retirement or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. Core Plus Income
Performance |
| Timeline |
| Fidelity Managed Ret |
| Core Plus Income |
Fidelity Managed and Core Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and Core Plus
The main advantage of trading using opposite Fidelity Managed and Core Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, Core Plus 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 Core Plus will offset losses from the drop in Core Plus' long position.| Fidelity Managed vs. Dreyfus Government Cash | Fidelity Managed vs. Short Term Government Fund | Fidelity Managed vs. Ridgeworth Seix Government | Fidelity Managed vs. Wesmark Government Bond |
| Core Plus vs. Guidepath Managed Futures | Core Plus vs. Ab Bond Inflation | Core Plus vs. Loomis Sayles Inflation | Core Plus vs. Ab Bond Inflation |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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