Correlation Between Fidelity Flex and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity Flex and Aggressive Growth 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 Flex and Aggressive Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Flex Freedom and Aggressive Growth Allocation, you can compare the effects of market volatilities on Fidelity Flex and Aggressive Growth 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 Flex with a short position of Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Flex and Aggressive Growth.
Diversification Opportunities for Fidelity Flex and Aggressive Growth
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Aggressive is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Flex Freedom and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth and Fidelity Flex 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 Flex Freedom are associated (or correlated) with Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Fidelity Flex i.e., Fidelity Flex and Aggressive Growth go up and down completely randomly.
Pair Corralation between Fidelity Flex and Aggressive Growth
Assuming the 90 days horizon Fidelity Flex is expected to generate 2.18 times less return on investment than Aggressive Growth. In addition to that, Fidelity Flex is 1.24 times more volatile than Aggressive Growth Allocation. It trades about 0.05 of its total potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.14 per unit of volatility. If you would invest 1,118 in Aggressive Growth Allocation on October 20, 2024 and sell it today you would earn a total of 20.00 from holding Aggressive Growth Allocation or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Flex Freedom vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Fidelity Flex Freedom |
| Aggressive Growth |
Fidelity Flex and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Flex and Aggressive Growth
The main advantage of trading using opposite Fidelity Flex and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Flex position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Fidelity Flex vs. Fisher Large Cap | Fidelity Flex vs. Large Cap Growth Profund | Fidelity Flex vs. Ab Large Cap | Fidelity Flex vs. Transamerica Large Cap |
| Aggressive Growth vs. Fidelity New Markets | Aggressive Growth vs. Franklin Emerging Market | Aggressive Growth vs. Barings Emerging Markets | Aggressive Growth vs. Ab All Market |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |