Correlation Between Fidelity Sai and Franklin International
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Franklin International 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 Franklin International 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 Franklin International Growth, you can compare the effects of market volatilities on Fidelity Sai and Franklin International 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 Franklin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Franklin International.
Diversification Opportunities for Fidelity Sai and Franklin International
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Franklin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Franklin International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin International 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 Franklin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin International has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Franklin International go up and down completely randomly.
Pair Corralation between Fidelity Sai and Franklin International
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.12 times more return on investment than Franklin International. However, Fidelity Sai Convertible is 8.31 times less risky than Franklin International. It trades about 0.4 of its potential returns per unit of risk. Franklin International Growth is currently generating about -0.01 per unit of risk. If you would invest 1,071 in Fidelity Sai Convertible on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Fidelity Sai Convertible or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Franklin International Growth
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Franklin International |
Fidelity Sai and Franklin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Franklin International
The main advantage of trading using opposite Fidelity Sai and Franklin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Franklin International 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 Franklin International will offset losses from the drop in Franklin International's long position.| Fidelity Sai vs. American Funds Inflation | Fidelity Sai vs. Ab Bond Inflation | Fidelity Sai vs. Blackrock Inflation Protected | Fidelity Sai vs. Lord Abbett Inflation |
| Franklin International vs. Jpmorgan High Yield | Franklin International vs. Janus High Yield Fund | Franklin International vs. T Rowe Price | Franklin International vs. Neuberger Berman Income |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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