Correlation Between Fidelity Sai and Baron Select
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Baron Select 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 Select 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 Select Funds, you can compare the effects of market volatilities on Fidelity Sai and Baron Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Baron Select.
Diversification Opportunities for Fidelity Sai and Baron Select
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Baron is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Baron Select Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron Select Funds 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Select Funds has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Baron Select go up and down completely randomly.
Pair Corralation between Fidelity Sai and Baron Select
Assuming the 90 days horizon Fidelity Sai is expected to generate 5.61 times less return on investment than Baron Select. But when comparing it to its historical volatility, Fidelity Sai Convertible is 10.72 times less risky than Baron Select. It trades about 0.25 of its potential returns per unit of risk. Baron Select Funds is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 543.00 in Baron Select Funds on September 14, 2024 and sell it today you would earn a total of 825.00 from holding Baron Select Funds or generate 151.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 64.04% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Baron Select Funds
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Baron Select Funds |
Fidelity Sai and Baron Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Baron Select
The main advantage of trading using opposite Fidelity Sai and Baron Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Baron Select 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 Select will offset losses from the drop in Baron Select's long position.| Fidelity Sai vs. Scharf Global Opportunity | Fidelity Sai vs. Arrow Managed Futures | Fidelity Sai vs. Red Oak Technology | Fidelity Sai vs. Balanced Fund Investor |
| Baron Select vs. Qs Moderate Growth | Baron Select vs. Franklin Lifesmart Retirement | Baron Select vs. Sierra E Retirement | Baron Select vs. Transamerica Cleartrack Retirement |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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