Correlation Between Fidelity LongShort and PIMCO Monthly
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By analyzing existing cross correlation between Fidelity LongShort Alternative and PIMCO Monthly Income, you can compare the effects of market volatilities on Fidelity LongShort and PIMCO Monthly 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 LongShort with a short position of PIMCO Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity LongShort and PIMCO Monthly.
Diversification Opportunities for Fidelity LongShort and PIMCO Monthly
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and PIMCO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity LongShort Alternative and PIMCO Monthly Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Monthly Income and Fidelity LongShort 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 LongShort Alternative are associated (or correlated) with PIMCO Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Monthly Income has no effect on the direction of Fidelity LongShort i.e., Fidelity LongShort and PIMCO Monthly go up and down completely randomly.
Pair Corralation between Fidelity LongShort and PIMCO Monthly
Assuming the 90 days trading horizon Fidelity LongShort Alternative is expected to generate 2.09 times more return on investment than PIMCO Monthly. However, Fidelity LongShort is 2.09 times more volatile than PIMCO Monthly Income. It trades about 0.11 of its potential returns per unit of risk. PIMCO Monthly Income is currently generating about -0.02 per unit of risk. If you would invest 1,012 in Fidelity LongShort Alternative on October 13, 2024 and sell it today you would earn a total of 150.00 from holding Fidelity LongShort Alternative or generate 14.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.27% |
| Values | Daily Returns |
Fidelity LongShort Alternative vs. PIMCO Monthly Income
Performance |
| Timeline |
| Fidelity LongShort |
| PIMCO Monthly Income |
Fidelity LongShort and PIMCO Monthly Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity LongShort and PIMCO Monthly
The main advantage of trading using opposite Fidelity LongShort and PIMCO Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity LongShort position performs unexpectedly, PIMCO Monthly 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 PIMCO Monthly will offset losses from the drop in PIMCO Monthly's long position.| Fidelity LongShort vs. Fidelity Global Value | Fidelity LongShort vs. Fidelity Momentum ETF | Fidelity LongShort vs. Fidelity Canadian High | Fidelity LongShort vs. Fidelity All in One Balanced |
| PIMCO Monthly vs. iShares Canadian HYBrid | PIMCO Monthly vs. Altagas Cum Red | PIMCO Monthly vs. European Residential Real | PIMCO Monthly vs. iShares Fundamental Hedged |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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