Correlation Between Fidelity Nordic and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Fidelity Nordic and Fidelity Sai 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 Nordic and Fidelity Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Nordic Fund and Fidelity Sai Canada, you can compare the effects of market volatilities on Fidelity Nordic and Fidelity Sai 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 Nordic with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Nordic and Fidelity Sai.
Diversification Opportunities for Fidelity Nordic and Fidelity Sai
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Fidelity is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Nordic Fund and Fidelity Sai Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Canada and Fidelity Nordic 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 Nordic Fund are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Canada has no effect on the direction of Fidelity Nordic i.e., Fidelity Nordic and Fidelity Sai go up and down completely randomly.
Pair Corralation between Fidelity Nordic and Fidelity Sai
Assuming the 90 days horizon Fidelity Nordic Fund is expected to under-perform the Fidelity Sai. In addition to that, Fidelity Nordic is 1.34 times more volatile than Fidelity Sai Canada. It trades about -0.18 of its total potential returns per unit of risk. Fidelity Sai Canada is currently generating about 0.2 per unit of volatility. If you would invest 1,036 in Fidelity Sai Canada on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Fidelity Sai Canada or generate 8.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Nordic Fund vs. Fidelity Sai Canada
Performance |
| Timeline |
| Fidelity Nordic |
| Fidelity Sai Canada |
Fidelity Nordic and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Nordic and Fidelity Sai
The main advantage of trading using opposite Fidelity Nordic and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Nordic position performs unexpectedly, Fidelity Sai 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 Sai will offset losses from the drop in Fidelity Sai's long position.| Fidelity Nordic vs. Fidelity Investment Trust | Fidelity Nordic vs. Fidelity Europe Fund | Fidelity Nordic vs. Fidelity Emerging Asia | Fidelity Nordic vs. Fidelity Pacific Basin |
| Fidelity Sai vs. Fidelity Freedom 2015 | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Pennsylvania 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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