Correlation Between Fidelity Puritan and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Aggressive Growth 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 Puritan and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Puritan Fund and Aggressive Growth Allocation, you can compare the effects of market volatilities on Fidelity Puritan and Aggressive Growth 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 Puritan with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Aggressive Growth.
Diversification Opportunities for Fidelity Puritan and Aggressive Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Aggressive is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Fidelity Puritan 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 Puritan Fund are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Aggressive Growth go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Aggressive Growth
Assuming the 90 days horizon Fidelity Puritan Fund is expected to under-perform the Aggressive Growth. In addition to that, Fidelity Puritan is 1.48 times more volatile than Aggressive Growth Allocation. It trades about 0.0 of its total potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.1 per unit of volatility. If you would invest 1,087 in Aggressive Growth Allocation on November 2, 2024 and sell it today you would earn a total of 70.00 from holding Aggressive Growth Allocation or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Fidelity Puritan |
| Aggressive Growth |
Fidelity Puritan and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Aggressive Growth
The main advantage of trading using opposite Fidelity Puritan and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Fidelity Puritan vs. Avantis Large Cap | Fidelity Puritan vs. Qs Large Cap | Fidelity Puritan vs. Tiaa Cref Large Cap Value | Fidelity Puritan vs. Touchstone Large Cap |
| Aggressive Growth vs. Vanguard E Bond | Aggressive Growth vs. Ambrus Core Bond | Aggressive Growth vs. Pace Municipal Fixed | Aggressive Growth vs. Ab Bond Inflation |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |