Correlation Between Fidelity Puritan and Dfa Intl
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Dfa Intl 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 Dfa Intl 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 Dfa Intl Core, you can compare the effects of market volatilities on Fidelity Puritan and Dfa Intl 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 Dfa Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Dfa Intl.
Diversification Opportunities for Fidelity Puritan and Dfa Intl
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Dfa is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Dfa Intl Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dfa Intl Core 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 Dfa Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dfa Intl Core has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Dfa Intl go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Dfa Intl
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.71 times more return on investment than Dfa Intl. However, Fidelity Puritan Fund is 1.4 times less risky than Dfa Intl. It trades about 0.4 of its potential returns per unit of risk. Dfa Intl Core is currently generating about 0.03 per unit of risk. If you would invest 2,469 in Fidelity Puritan Fund on September 1, 2024 and sell it today you would earn a total of 114.00 from holding Fidelity Puritan Fund or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Dfa Intl Core
Performance |
| Timeline |
| Fidelity Puritan |
| Dfa Intl Core |
Fidelity Puritan and Dfa Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Dfa Intl
The main advantage of trading using opposite Fidelity Puritan and Dfa Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Dfa Intl 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 Dfa Intl will offset losses from the drop in Dfa Intl's long position.| Fidelity Puritan vs. Fidelity Balanced Fund | Fidelity Puritan vs. Fidelity Magellan Fund | Fidelity Puritan vs. Fidelity Growth Income | Fidelity Puritan vs. Fidelity Equity Income Fund |
| Dfa Intl vs. Calamos Dynamic Convertible | Dfa Intl vs. Harbor Vertible Securities | Dfa Intl vs. Rationalpier 88 Convertible | Dfa Intl vs. Lord Abbett Convertible |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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