Correlation Between Fidelity Stock and Siit Large
Can any of the company-specific risk be diversified away by investing in both Fidelity Stock and Siit Large 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 Stock and Siit Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Stock Selector and Siit Large Cap, you can compare the effects of market volatilities on Fidelity Stock and Siit Large 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 Stock with a short position of Siit Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Stock and Siit Large.
Diversification Opportunities for Fidelity Stock and Siit Large
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FIDELITY and Siit is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Stock Selector and Siit Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Large Cap and Fidelity Stock 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 Stock Selector are associated (or correlated) with Siit Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Large Cap has no effect on the direction of Fidelity Stock i.e., Fidelity Stock and Siit Large go up and down completely randomly.
Pair Corralation between Fidelity Stock and Siit Large
Assuming the 90 days horizon Fidelity Stock Selector is expected to generate 0.99 times more return on investment than Siit Large. However, Fidelity Stock Selector is 1.01 times less risky than Siit Large. It trades about 0.18 of its potential returns per unit of risk. Siit Large Cap is currently generating about 0.12 per unit of risk. If you would invest 2,849 in Fidelity Stock Selector on August 24, 2024 and sell it today you would earn a total of 92.00 from holding Fidelity Stock Selector or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fidelity Stock Selector vs. Siit Large Cap
Performance |
| Timeline |
| Fidelity Stock Selector |
| Siit Large Cap |
Fidelity Stock and Siit Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Stock and Siit Large
The main advantage of trading using opposite Fidelity Stock and Siit Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Stock position performs unexpectedly, Siit Large 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 Siit Large will offset losses from the drop in Siit Large's long position.| Fidelity Stock vs. Western Asset High | Fidelity Stock vs. Pioneer High Income | Fidelity Stock vs. T Rowe Price | Fidelity Stock vs. California High Yield Municipal |
| Siit Large vs. Franklin High Yield | Siit Large vs. Gamco Global Telecommunications | Siit Large vs. Nuveen Minnesota Municipal | Siit Large vs. Baird Strategic Municipal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |