Correlation Between Fidelity Sai and Aberdeen China
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Aberdeen China 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 Sai and Aberdeen China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Inflationfocused and Aberdeen China Oppty, you can compare the effects of market volatilities on Fidelity Sai and Aberdeen China 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 Sai with a short position of Aberdeen China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Aberdeen China.
Diversification Opportunities for Fidelity Sai and Aberdeen China
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Aberdeen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Inflationfocused and Aberdeen China Oppty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen China Oppty and Fidelity Sai 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 Sai Inflationfocused are associated (or correlated) with Aberdeen China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen China Oppty has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Aberdeen China go up and down completely randomly.
Pair Corralation between Fidelity Sai and Aberdeen China
Assuming the 90 days horizon Fidelity Sai Inflationfocused is expected to generate 0.78 times more return on investment than Aberdeen China. However, Fidelity Sai Inflationfocused is 1.28 times less risky than Aberdeen China. It trades about 0.51 of its potential returns per unit of risk. Aberdeen China Oppty is currently generating about -0.07 per unit of risk. If you would invest 8,313 in Fidelity Sai Inflationfocused on October 20, 2024 and sell it today you would earn a total of 819.00 from holding Fidelity Sai Inflationfocused or generate 9.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fidelity Sai Inflationfocused vs. Aberdeen China Oppty
Performance |
| Timeline |
| Fidelity Sai Inflati |
| Aberdeen China Oppty |
Fidelity Sai and Aberdeen China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Aberdeen China
The main advantage of trading using opposite Fidelity Sai and Aberdeen China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Aberdeen China 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 Aberdeen China will offset losses from the drop in Aberdeen China's long position.| Fidelity Sai vs. Dreyfusstandish Global Fixed | Fidelity Sai vs. Dreyfusstandish Global Fixed | Fidelity Sai vs. Gmo Global Equity | Fidelity Sai vs. Ab Global Bond |
| Aberdeen China vs. Needham Aggressive Growth | Aberdeen China vs. Small Pany Growth | Aberdeen China vs. The Hartford Growth | Aberdeen China vs. Tfa Alphagen Growth |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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