Correlation Between Fidelity China and Allianzgi Short
Can any of the company-specific risk be diversified away by investing in both Fidelity China and Allianzgi Short 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 China and Allianzgi Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity China Region and Allianzgi Short Duration, you can compare the effects of market volatilities on Fidelity China and Allianzgi Short 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 China with a short position of Allianzgi Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity China and Allianzgi Short.
Diversification Opportunities for Fidelity China and Allianzgi Short
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Allianzgi is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity China Region and Allianzgi Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Short Duration and Fidelity China 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 China Region are associated (or correlated) with Allianzgi Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Short Duration has no effect on the direction of Fidelity China i.e., Fidelity China and Allianzgi Short go up and down completely randomly.
Pair Corralation between Fidelity China and Allianzgi Short
Assuming the 90 days horizon Fidelity China Region is expected to under-perform the Allianzgi Short. In addition to that, Fidelity China is 16.99 times more volatile than Allianzgi Short Duration. It trades about -0.08 of its total potential returns per unit of risk. Allianzgi Short Duration is currently generating about 0.2 per unit of volatility. If you would invest 1,359 in Allianzgi Short Duration on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Allianzgi Short Duration or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity China Region vs. Allianzgi Short Duration
Performance |
| Timeline |
| Fidelity China Region |
| Allianzgi Short Duration |
Fidelity China and Allianzgi Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity China and Allianzgi Short
The main advantage of trading using opposite Fidelity China and Allianzgi Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity China position performs unexpectedly, Allianzgi Short 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 Allianzgi Short will offset losses from the drop in Allianzgi Short's long position.| Fidelity China vs. Nationwide Growth Fund | Fidelity China vs. T Rowe Price | Fidelity China vs. Legg Mason Partners | Fidelity China vs. Rational Defensive Growth |
| Allianzgi Short vs. Lord Abbett Government | Allianzgi Short vs. Prudential Government Income | Allianzgi Short vs. Inverse Government Long | Allianzgi Short vs. Ab Government Exchange |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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