Correlation Between Fidelity Puritan and Lsv Global
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Lsv Global 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 Lsv Global 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 Lsv Global Value, you can compare the effects of market volatilities on Fidelity Puritan and Lsv Global 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 Lsv Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Lsv Global.
Diversification Opportunities for Fidelity Puritan and Lsv Global
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Lsv is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Lsv Global Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Global Value 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 Lsv Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Global Value has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Lsv Global go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Lsv Global
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.83 times more return on investment than Lsv Global. However, Fidelity Puritan Fund is 1.2 times less risky than Lsv Global. It trades about 0.09 of its potential returns per unit of risk. Lsv Global Value is currently generating about 0.07 per unit of risk. If you would invest 1,947 in Fidelity Puritan Fund on August 27, 2024 and sell it today you would earn a total of 606.00 from holding Fidelity Puritan Fund or generate 31.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Lsv Global Value
Performance |
| Timeline |
| Fidelity Puritan |
| Lsv Global Value |
Fidelity Puritan and Lsv Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Lsv Global
The main advantage of trading using opposite Fidelity Puritan and Lsv Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Lsv Global 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 Lsv Global will offset losses from the drop in Lsv Global'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 |
| Lsv Global vs. Chautauqua Global Growth | Lsv Global vs. Causeway Global Value | Lsv Global vs. Ariel Global Fund | Lsv Global vs. Artisan Emerging Markets |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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