Correlation Between Fidelity Series and Stralem Equity
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Stralem Equity 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 Stralem Equity 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 Stralem Equity Fund, you can compare the effects of market volatilities on Fidelity Series and Stralem Equity 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 Stralem Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Stralem Equity.
Diversification Opportunities for Fidelity Series and Stralem Equity
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Stralem is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series 1000 and Stralem Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stralem Equity 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 Stralem Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stralem Equity has no effect on the direction of Fidelity Series i.e., Fidelity Series and Stralem Equity go up and down completely randomly.
Pair Corralation between Fidelity Series and Stralem Equity
Assuming the 90 days horizon Fidelity Series 1000 is expected to under-perform the Stralem Equity. In addition to that, Fidelity Series is 1.09 times more volatile than Stralem Equity Fund. It trades about -0.07 of its total potential returns per unit of risk. Stralem Equity Fund is currently generating about 0.04 per unit of volatility. If you would invest 3,093 in Stralem Equity Fund on September 13, 2024 and sell it today you would earn a total of 34.00 from holding Stralem Equity Fund or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series 1000 vs. Stralem Equity Fund
Performance |
| Timeline |
| Fidelity Series 1000 |
| Stralem Equity |
Fidelity Series and Stralem Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Stralem Equity
The main advantage of trading using opposite Fidelity Series and Stralem Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Stralem Equity 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 Stralem Equity will offset losses from the drop in Stralem Equity'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 |
| Stralem Equity vs. Locorr Market Trend | Stralem Equity vs. Calvert Developed Market | Stralem Equity vs. Aqr Long Short Equity | Stralem Equity vs. Extended Market Index |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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