Correlation Between Fidelity Mid-cap and Fidelity Stock
Can any of the company-specific risk be diversified away by investing in both Fidelity Mid-cap and Fidelity Stock 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 Mid-cap and Fidelity Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Mid Cap Stock and Fidelity Stock Selector, you can compare the effects of market volatilities on Fidelity Mid-cap and Fidelity Stock 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 Mid-cap with a short position of Fidelity Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Mid-cap and Fidelity Stock.
Diversification Opportunities for Fidelity Mid-cap and Fidelity Stock
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Mid Cap Stock and Fidelity Stock Selector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Stock Selector and Fidelity Mid-cap 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 Mid Cap Stock are associated (or correlated) with Fidelity Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Stock Selector has no effect on the direction of Fidelity Mid-cap i.e., Fidelity Mid-cap and Fidelity Stock go up and down completely randomly.
Pair Corralation between Fidelity Mid-cap and Fidelity Stock
Assuming the 90 days horizon Fidelity Mid Cap Stock is expected to under-perform the Fidelity Stock. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Mid Cap Stock is 1.12 times less risky than Fidelity Stock. The mutual fund trades about -0.32 of its potential returns per unit of risk. The Fidelity Stock Selector is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 4,042 in Fidelity Stock Selector on October 11, 2024 and sell it today you would lose (277.00) from holding Fidelity Stock Selector or give up 6.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Mid Cap Stock vs. Fidelity Stock Selector
Performance |
| Timeline |
| Fidelity Mid Cap |
| Fidelity Stock Selector |
Fidelity Mid-cap and Fidelity Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Mid-cap and Fidelity Stock
The main advantage of trading using opposite Fidelity Mid-cap and Fidelity Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Mid-cap position performs unexpectedly, Fidelity Stock 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 Fidelity Stock will offset losses from the drop in Fidelity Stock's long position.| Fidelity Mid-cap vs. Fidelity Dividend Growth | Fidelity Mid-cap vs. Fidelity Diversified International | Fidelity Mid-cap vs. Fidelity Value Fund | Fidelity Mid-cap vs. Fidelity Low Priced Stock |
| Fidelity Stock vs. Fidelity Stock Selector | Fidelity Stock vs. Fidelity Disciplined Equity | Fidelity Stock vs. Ab Flexfee Thematic | Fidelity Stock vs. Fidelity Value Fund |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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