Correlation Between Fidelity Series and Equity Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Equity Growth 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 Equity Growth 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 Equity Growth Strategy, you can compare the effects of market volatilities on Fidelity Series and Equity Growth 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 Equity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Equity Growth.
Diversification Opportunities for Fidelity Series and Equity Growth
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Equity is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series 1000 and Equity Growth Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Growth Strategy 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 Equity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Growth Strategy has no effect on the direction of Fidelity Series i.e., Fidelity Series and Equity Growth go up and down completely randomly.
Pair Corralation between Fidelity Series and Equity Growth
Assuming the 90 days horizon Fidelity Series 1000 is expected to generate 1.0 times more return on investment than Equity Growth. However, Fidelity Series is 1.0 times more volatile than Equity Growth Strategy. It trades about 0.16 of its potential returns per unit of risk. Equity Growth Strategy is currently generating about 0.1 per unit of risk. If you would invest 1,574 in Fidelity Series 1000 on September 3, 2024 and sell it today you would earn a total of 230.00 from holding Fidelity Series 1000 or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series 1000 vs. Equity Growth Strategy
Performance |
| Timeline |
| Fidelity Series 1000 |
| Equity Growth Strategy |
Fidelity Series and Equity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Equity Growth
The main advantage of trading using opposite Fidelity Series and Equity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Equity Growth 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 Equity Growth will offset losses from the drop in Equity Growth's long position.| Fidelity Series vs. John Hancock Funds | Fidelity Series vs. T Rowe Price | Fidelity Series vs. T Rowe Price | Fidelity Series vs. Hood River New |
| Equity Growth vs. Fidelity Series 1000 | Equity Growth vs. Qs Large Cap | Equity Growth vs. Siit Large Cap | Equity Growth vs. Jhancock Disciplined Value |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |