Correlation Between Fidelity Magellan and The Fairholme
Can any of the company-specific risk be diversified away by investing in both Fidelity Magellan and The Fairholme 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 Magellan and The Fairholme into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Magellan Fund and The Fairholme Focused, you can compare the effects of market volatilities on Fidelity Magellan and The Fairholme 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 Magellan with a short position of The Fairholme. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Magellan and The Fairholme.
Diversification Opportunities for Fidelity Magellan and The Fairholme
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIDELITY and The is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Magellan Fund and The Fairholme Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fairholme Focused and Fidelity Magellan 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 Magellan Fund are associated (or correlated) with The Fairholme. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fairholme Focused has no effect on the direction of Fidelity Magellan i.e., Fidelity Magellan and The Fairholme go up and down completely randomly.
Pair Corralation between Fidelity Magellan and The Fairholme
Assuming the 90 days horizon Fidelity Magellan Fund is expected to under-perform the The Fairholme. In addition to that, Fidelity Magellan is 3.15 times more volatile than The Fairholme Focused. It trades about -0.23 of its total potential returns per unit of risk. The Fairholme Focused is currently generating about 0.07 per unit of volatility. If you would invest 1,426 in The Fairholme Focused on December 4, 2024 and sell it today you would earn a total of 7.00 from holding The Fairholme Focused or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Fidelity Magellan Fund vs. The Fairholme Focused
Performance |
| Timeline |
| Fidelity Magellan |
| Fairholme Focused |
Fidelity Magellan and The Fairholme Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Magellan and The Fairholme
The main advantage of trading using opposite Fidelity Magellan and The Fairholme positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Magellan position performs unexpectedly, The Fairholme 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 The Fairholme will offset losses from the drop in The Fairholme's long position.| Fidelity Magellan vs. Fidelity Growth Income | Fidelity Magellan vs. Fidelity Equity Income Fund | Fidelity Magellan vs. Fidelity Contrafund | Fidelity Magellan vs. Fidelity Growth Pany |
| The Fairholme vs. Eip Growth And | The Fairholme vs. Ab Centrated International | The Fairholme vs. Vanguard Growth Index | The Fairholme vs. The Hartford Growth |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |