Correlation Between Fidelity Puritan and Fidelity Mid-cap
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Fidelity Mid-cap 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 Fidelity Mid-cap 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 Fidelity Mid Cap Stock, you can compare the effects of market volatilities on Fidelity Puritan and Fidelity Mid-cap 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 Fidelity Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Fidelity Mid-cap.
Diversification Opportunities for Fidelity Puritan and Fidelity Mid-cap
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Fidelity Mid Cap Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Mid Cap 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 Fidelity Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Mid Cap has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Fidelity Mid-cap go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Fidelity Mid-cap
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.69 times more return on investment than Fidelity Mid-cap. However, Fidelity Puritan Fund is 1.45 times less risky than Fidelity Mid-cap. It trades about 0.09 of its potential returns per unit of risk. Fidelity Mid Cap Stock is currently generating about 0.04 per unit of risk. If you would invest 1,893 in Fidelity Puritan Fund on August 24, 2024 and sell it today you would earn a total of 646.00 from holding Fidelity Puritan Fund or generate 34.13% 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. Fidelity Mid Cap Stock
Performance |
| Timeline |
| Fidelity Puritan |
| Fidelity Mid Cap |
Fidelity Puritan and Fidelity Mid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Fidelity Mid-cap
The main advantage of trading using opposite Fidelity Puritan and Fidelity Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Fidelity Mid-cap 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 Fidelity Mid-cap will offset losses from the drop in Fidelity Mid-cap'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 |
| Fidelity Mid-cap vs. Fidelity Dividend Growth | Fidelity Mid-cap vs. Fidelity Diversified International | Fidelity Mid-cap vs. Fidelity Value Fund | Fidelity Mid-cap vs. Fidelity Low Priced Stock |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |