Correlation Between Fidelity Intermediate and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Fidelity Intermediate and Old Westbury 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 Intermediate and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Intermediate Municipal and Old Westbury Municipal, you can compare the effects of market volatilities on Fidelity Intermediate and Old Westbury 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 Intermediate with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Intermediate and Old Westbury.
Diversification Opportunities for Fidelity Intermediate and Old Westbury
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Old is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Intermediate Municipa and Old Westbury Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Municipal and Fidelity Intermediate 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 Intermediate Municipal are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Municipal has no effect on the direction of Fidelity Intermediate i.e., Fidelity Intermediate and Old Westbury go up and down completely randomly.
Pair Corralation between Fidelity Intermediate and Old Westbury
Assuming the 90 days horizon Fidelity Intermediate Municipal is expected to generate 1.18 times more return on investment than Old Westbury. However, Fidelity Intermediate is 1.18 times more volatile than Old Westbury Municipal. It trades about 0.13 of its potential returns per unit of risk. Old Westbury Municipal is currently generating about 0.14 per unit of risk. If you would invest 1,007 in Fidelity Intermediate Municipal on August 27, 2024 and sell it today you would earn a total of 7.00 from holding Fidelity Intermediate Municipal or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Intermediate Municipa vs. Old Westbury Municipal
Performance |
| Timeline |
| Fidelity Intermediate |
| Old Westbury Municipal |
Fidelity Intermediate and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Intermediate and Old Westbury
The main advantage of trading using opposite Fidelity Intermediate and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Intermediate position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Fidelity Intermediate vs. Fidelity Limited Term | Fidelity Intermediate vs. Fidelity Municipal Income | Fidelity Intermediate vs. Fidelity Tax Free Bond | Fidelity Intermediate vs. Fidelity Advisor Floating |
| Old Westbury vs. Nuveen Minnesota Municipal | Old Westbury vs. Morningstar Defensive Bond | Old Westbury vs. Intermediate Term Bond Fund | Old Westbury vs. Ishares Municipal Bond |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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