Correlation Between Fidelity Salem and Fidelity Flex
Can any of the company-specific risk be diversified away by investing in both Fidelity Salem and Fidelity Flex 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 Salem and Fidelity Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Salem Street and Fidelity Flex Mid, you can compare the effects of market volatilities on Fidelity Salem and Fidelity Flex 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 Salem with a short position of Fidelity Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Salem and Fidelity Flex.
Diversification Opportunities for Fidelity Salem and Fidelity Flex
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Fidelity is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Salem Street and Fidelity Flex Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex Mid and Fidelity Salem 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 Salem Street are associated (or correlated) with Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex Mid has no effect on the direction of Fidelity Salem i.e., Fidelity Salem and Fidelity Flex go up and down completely randomly.
Pair Corralation between Fidelity Salem and Fidelity Flex
Assuming the 90 days horizon Fidelity Salem Street is expected to under-perform the Fidelity Flex. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Salem Street is 1.12 times less risky than Fidelity Flex. The mutual fund trades about -0.31 of its potential returns per unit of risk. The Fidelity Flex Mid is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,898 in Fidelity Flex Mid on August 27, 2024 and sell it today you would earn a total of 119.00 from holding Fidelity Flex Mid or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Salem Street vs. Fidelity Flex Mid
Performance |
| Timeline |
| Fidelity Salem Street |
| Fidelity Flex Mid |
Fidelity Salem and Fidelity Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Salem and Fidelity Flex
The main advantage of trading using opposite Fidelity Salem and Fidelity Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Salem position performs unexpectedly, Fidelity Flex 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 Flex will offset losses from the drop in Fidelity Flex's long position.| Fidelity Salem vs. Fidelity Total International | Fidelity Salem vs. Fidelity Mega Cap | Fidelity Salem vs. Fidelity International Value |
| Fidelity Flex vs. Fidelity Freedom 2015 | Fidelity Flex vs. Fidelity Puritan Fund | Fidelity Flex vs. Fidelity Puritan Fund | Fidelity Flex vs. Fidelity Pennsylvania Municipal |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |