Correlation Between Fidelity Puritan and Gold Portfolio
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Gold Portfolio 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 Gold Portfolio 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 Gold Portfolio Gold, you can compare the effects of market volatilities on Fidelity Puritan and Gold Portfolio 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 Gold Portfolio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Gold Portfolio.
Diversification Opportunities for Fidelity Puritan and Gold Portfolio
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fidelity and Gold is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Gold Portfolio Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Portfolio Gold 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 Gold Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Portfolio Gold has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Gold Portfolio go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Gold Portfolio
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.38 times more return on investment than Gold Portfolio. However, Fidelity Puritan Fund is 2.64 times less risky than Gold Portfolio. It trades about 0.1 of its potential returns per unit of risk. Gold Portfolio Gold is currently generating about 0.03 per unit of risk. If you would invest 2,017 in Fidelity Puritan Fund on August 31, 2024 and sell it today you would earn a total of 566.00 from holding Fidelity Puritan Fund or generate 28.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Gold Portfolio Gold
Performance |
| Timeline |
| Fidelity Puritan |
| Gold Portfolio Gold |
Fidelity Puritan and Gold Portfolio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Gold Portfolio
The main advantage of trading using opposite Fidelity Puritan and Gold Portfolio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Gold Portfolio 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 Gold Portfolio will offset losses from the drop in Gold Portfolio'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 |
| Gold Portfolio vs. Fidelity Select Portfolios | Gold Portfolio vs. Fidelity Natural Resources | Gold Portfolio vs. Materials Portfolio Materials | Gold Portfolio vs. Banking Portfolio Banking |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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