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 International, 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
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Strategic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Strategic Advisers Internation 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 1.93 times less return on investment than Strategic Advisers. But when comparing it to its historical volatility, Fidelity Puritan Fund is 1.03 times less risky than Strategic Advisers. It trades about 0.15 of its potential returns per unit of risk. Strategic Advisers International is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,165 in Strategic Advisers International on November 9, 2024 and sell it today you would earn a total of 54.00 from holding Strategic Advisers International or generate 4.64% 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 Internation
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 |
| Strategic Advisers vs. Morgan Stanley Emerging | Strategic Advisers vs. Siit Emerging Markets | Strategic Advisers vs. Franklin Emerging Market | Strategic Advisers vs. Hartford Schroders Emerging |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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