Correlation Between Fidelity New and FSMO
Can any of the company-specific risk be diversified away by investing in both Fidelity New and FSMO 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 New and FSMO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity New Millennium and FSMO, you can compare the effects of market volatilities on Fidelity New and FSMO 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 New with a short position of FSMO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and FSMO.
Diversification Opportunities for Fidelity New and FSMO
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and FSMO is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Millennium and FSMO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSMO and Fidelity New 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 New Millennium are associated (or correlated) with FSMO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSMO has no effect on the direction of Fidelity New i.e., Fidelity New and FSMO go up and down completely randomly.
Pair Corralation between Fidelity New and FSMO
If you would invest 2,244 in FSMO on August 30, 2024 and sell it today you would earn a total of 0.00 from holding FSMO or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity New Millennium vs. FSMO
Performance |
| Timeline |
| Fidelity New Millennium |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FSMO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity New and FSMO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and FSMO
The main advantage of trading using opposite Fidelity New and FSMO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New position performs unexpectedly, FSMO 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 FSMO will offset losses from the drop in FSMO's long position.| Fidelity New vs. Fidelity Blue Chip | Fidelity New vs. Fidelity Blue Chip | Fidelity New vs. Fidelity Covington Trust |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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