Correlation Between Fidelity Sai and Baron Health
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Baron Health 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 Sai and Baron Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Baron Health Care, you can compare the effects of market volatilities on Fidelity Sai and Baron Health 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 Sai with a short position of Baron Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Baron Health.
Diversification Opportunities for Fidelity Sai and Baron Health
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Baron is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Baron Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Health Care and Fidelity Sai 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 Sai Convertible are associated (or correlated) with Baron Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Health Care has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Baron Health go up and down completely randomly.
Pair Corralation between Fidelity Sai and Baron Health
Assuming the 90 days horizon Fidelity Sai is expected to generate 6.23 times less return on investment than Baron Health. But when comparing it to its historical volatility, Fidelity Sai Convertible is 13.12 times less risky than Baron Health. It trades about 0.63 of its potential returns per unit of risk. Baron Health Care is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,935 in Baron Health Care on November 3, 2024 and sell it today you would earn a total of 104.00 from holding Baron Health Care or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Baron Health Care
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Baron Health Care |
Fidelity Sai and Baron Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Baron Health
The main advantage of trading using opposite Fidelity Sai and Baron Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Baron Health 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 Baron Health will offset losses from the drop in Baron Health's long position.| Fidelity Sai vs. Rbc Global Equity | Fidelity Sai vs. Kinetics Global Fund | Fidelity Sai vs. Scharf Global Opportunity | Fidelity Sai vs. Commonwealth Global Fund |
| Baron Health vs. Chestnut Street Exchange | Baron Health vs. Ab Government Exchange | Baron Health vs. Schwab Government Money | Baron Health vs. Financial Industries Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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