Correlation Between Fidelity Puritan and Frost Low
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Frost Low 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 Frost Low 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 Frost Low Duration, you can compare the effects of market volatilities on Fidelity Puritan and Frost Low 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 Frost Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Frost Low.
Diversification Opportunities for Fidelity Puritan and Frost Low
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Frost is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Frost Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Low Duration 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 Frost Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Low Duration has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Frost Low go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Frost Low
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 4.76 times more return on investment than Frost Low. However, Fidelity Puritan is 4.76 times more volatile than Frost Low Duration. It trades about 0.13 of its potential returns per unit of risk. Frost Low Duration is currently generating about 0.03 per unit of risk. If you would invest 2,507 in Fidelity Puritan Fund on August 29, 2024 and sell it today you would earn a total of 46.00 from holding Fidelity Puritan Fund or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Frost Low Duration
Performance |
| Timeline |
| Fidelity Puritan |
| Frost Low Duration |
Fidelity Puritan and Frost Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Frost Low
The main advantage of trading using opposite Fidelity Puritan and Frost Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Frost Low 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 Frost Low will offset losses from the drop in Frost Low'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 |
| Frost Low vs. Frost Growth Equity | Frost Low vs. Frost Total Return | Frost Low vs. Frost Credit Fund | Frost Low vs. Fidelity Advisor Freedom |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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