Correlation Between Fidelity International and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity International and Aggressive 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 International and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity International Capital and Aggressive Growth Allocation, you can compare the effects of market volatilities on Fidelity International and Aggressive 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 International with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity International and Aggressive Growth.
Diversification Opportunities for Fidelity International and Aggressive Growth
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Aggressive is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity International Capital and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Fidelity International 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 International Capital are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Fidelity International i.e., Fidelity International and Aggressive Growth go up and down completely randomly.
Pair Corralation between Fidelity International and Aggressive Growth
Assuming the 90 days horizon Fidelity International Capital is expected to under-perform the Aggressive Growth. In addition to that, Fidelity International is 1.29 times more volatile than Aggressive Growth Allocation. It trades about -0.08 of its total potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.09 per unit of volatility. If you would invest 1,141 in Aggressive Growth Allocation on August 26, 2024 and sell it today you would earn a total of 14.00 from holding Aggressive Growth Allocation or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity International Capital vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Fidelity International |
| Aggressive Growth |
Fidelity International and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity International and Aggressive Growth
The main advantage of trading using opposite Fidelity International and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity International position performs unexpectedly, Aggressive 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Fidelity International vs. Fidelity Worldwide Fund | Fidelity International vs. Fidelity Pacific Basin | Fidelity International vs. Fidelity Europe Fund | Fidelity International vs. Fidelity Japan Fund |
| Aggressive Growth vs. Fidelity Asset Manager | Aggressive Growth vs. Fidelity Asset Manager | Aggressive Growth vs. Fidelity Asset Manager | Aggressive Growth vs. Fidelity International Capital |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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