Correlation Between Fidelity Series and Cullen Emerging
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Cullen Emerging 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 Cullen Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series 1000 and Cullen Emerging Markets, you can compare the effects of market volatilities on Fidelity Series and Cullen Emerging 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 Cullen Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Cullen Emerging.
Diversification Opportunities for Fidelity Series and Cullen Emerging
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and Cullen is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series 1000 and Cullen Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen Emerging Markets 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 1000 are associated (or correlated) with Cullen Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen Emerging Markets has no effect on the direction of Fidelity Series i.e., Fidelity Series and Cullen Emerging go up and down completely randomly.
Pair Corralation between Fidelity Series and Cullen Emerging
Assuming the 90 days horizon Fidelity Series 1000 is expected to generate 0.88 times more return on investment than Cullen Emerging. However, Fidelity Series 1000 is 1.13 times less risky than Cullen Emerging. It trades about 0.09 of its potential returns per unit of risk. Cullen Emerging Markets is currently generating about 0.07 per unit of risk. If you would invest 1,452 in Fidelity Series 1000 on September 12, 2024 and sell it today you would earn a total of 244.00 from holding Fidelity Series 1000 or generate 16.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series 1000 vs. Cullen Emerging Markets
Performance |
| Timeline |
| Fidelity Series 1000 |
| Cullen Emerging Markets |
Fidelity Series and Cullen Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Cullen Emerging
The main advantage of trading using opposite Fidelity Series and Cullen Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Cullen Emerging 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 Cullen Emerging will offset losses from the drop in Cullen Emerging's long position.| Fidelity Series vs. Balanced Fund Investor | Fidelity Series vs. Small Cap Stock | Fidelity Series vs. Issachar Fund Class | Fidelity Series vs. Rbb Fund |
| Cullen Emerging vs. Touchstone Large Cap | Cullen Emerging vs. Fidelity Series 1000 | Cullen Emerging vs. Lord Abbett Affiliated | Cullen Emerging vs. Transamerica Large Cap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| 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 |