Correlation Between Fidelity Sai and Federated High
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Federated High 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 Federated High 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 Federated High Income, you can compare the effects of market volatilities on Fidelity Sai and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Federated High.
Diversification Opportunities for Fidelity Sai and Federated High
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Federated is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Federated High go up and down completely randomly.
Pair Corralation between Fidelity Sai and Federated High
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.01 times less return on investment than Federated High. But when comparing it to its historical volatility, Fidelity Sai Convertible is 2.05 times less risky than Federated High. It trades about 0.25 of its potential returns per unit of risk. Federated High Income is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Federated High Income on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Federated High Income or generate 19.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 64.17% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Federated High Income
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Federated High Income |
Fidelity Sai and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Federated High
The main advantage of trading using opposite Fidelity Sai and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High'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 |
| Federated High vs. Putnam Convertible Incm Gwth | Federated High vs. Fidelity Sai Convertible | Federated High vs. Allianzgi Convertible Income | Federated High vs. Gabelli Convertible And |
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..
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