Correlation Between Fidelity Sai and New Economy
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and New Economy 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 New Economy 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 New Economy Fund, you can compare the effects of market volatilities on Fidelity Sai and New Economy 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 New Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and New Economy.
Diversification Opportunities for Fidelity Sai and New Economy
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and New is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Inflationfocused and New Economy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Economy Fund 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 New Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Economy Fund has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and New Economy go up and down completely randomly.
Pair Corralation between Fidelity Sai and New Economy
Assuming the 90 days horizon Fidelity Sai Inflationfocused is expected to under-perform the New Economy. In addition to that, Fidelity Sai is 1.24 times more volatile than New Economy Fund. It trades about -0.02 of its total potential returns per unit of risk. New Economy Fund is currently generating about 0.05 per unit of volatility. If you would invest 6,704 in New Economy Fund on September 13, 2024 and sell it today you would earn a total of 97.00 from holding New Economy Fund or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Inflationfocused vs. New Economy Fund
Performance |
| Timeline |
| Fidelity Sai Inflati |
| New Economy Fund |
Fidelity Sai and New Economy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and New Economy
The main advantage of trading using opposite Fidelity Sai and New Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, New Economy 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 New Economy will offset losses from the drop in New Economy's long position.| Fidelity Sai vs. Fpa Queens Road | Fidelity Sai vs. Pace Smallmedium Value | Fidelity Sai vs. Valic Company I | Fidelity Sai vs. Lord Abbett Small |
| New Economy vs. Ab Bond Inflation | New Economy vs. Fidelity Sai Inflationfocused | New Economy vs. Loomis Sayles Inflation | New Economy vs. Aqr Managed Futures |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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