Correlation Between Fidelity Managed and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and Fidelity Series 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 Managed and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Managed Retirement and Fidelity Series Growth, you can compare the effects of market volatilities on Fidelity Managed and Fidelity Series 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 Managed with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Fidelity Series.
Diversification Opportunities for Fidelity Managed and Fidelity Series
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Fidelity is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Fidelity Series Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Growth and Fidelity Managed 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 Managed Retirement are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Growth has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Fidelity Series go up and down completely randomly.
Pair Corralation between Fidelity Managed and Fidelity Series
Assuming the 90 days horizon Fidelity Managed is expected to generate 6.35 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Fidelity Managed Retirement is 2.84 times less risky than Fidelity Series. It trades about 0.09 of its potential returns per unit of risk. Fidelity Series Growth is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,338 in Fidelity Series Growth on August 31, 2024 and sell it today you would earn a total of 88.00 from holding Fidelity Series Growth or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Managed Retirement vs. Fidelity Series Growth
Performance |
| Timeline |
| Fidelity Managed Ret |
| Fidelity Series Growth |
Fidelity Managed and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Managed and Fidelity Series
The main advantage of trading using opposite Fidelity Managed and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Fidelity Managed vs. Columbia Real Estate | Fidelity Managed vs. Jhancock Real Estate | Fidelity Managed vs. Commonwealth Real Estate | Fidelity Managed vs. Tiaa Cref Real Estate |
| Fidelity Series vs. Ambrus Core Bond | Fidelity Series vs. Transamerica Intermediate Muni | Fidelity Series vs. Jpmorgan Short Intermediate Municipal | Fidelity Series vs. Calamos Short Term Bond |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |