Correlation Between Fidelity Puritan and Strategic Advisers
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Strategic Advisers 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 Strategic Advisers 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 Strategic Advisers Fidelity, you can compare the effects of market volatilities on Fidelity Puritan and Strategic Advisers 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 Strategic Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Strategic Advisers.
Diversification Opportunities for Fidelity Puritan and Strategic Advisers
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Strategic is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Strategic Advisers Fidelity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Advisers 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 Strategic Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Advisers has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Strategic Advisers go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Strategic Advisers
Assuming the 90 days horizon Fidelity Puritan is expected to generate 1.31 times less return on investment than Strategic Advisers. But when comparing it to its historical volatility, Fidelity Puritan Fund is 1.45 times less risky than Strategic Advisers. It trades about 0.39 of its potential returns per unit of risk. Strategic Advisers Fidelity is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,743 in Strategic Advisers Fidelity on September 3, 2024 and sell it today you would earn a total of 101.00 from holding Strategic Advisers Fidelity or generate 5.79% 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. Strategic Advisers Fidelity
Performance |
| Timeline |
| Fidelity Puritan |
| Strategic Advisers |
Fidelity Puritan and Strategic Advisers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Strategic Advisers
The main advantage of trading using opposite Fidelity Puritan and Strategic Advisers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Strategic Advisers 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 Strategic Advisers will offset losses from the drop in Strategic Advisers' 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 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |