Correlation Between Fidelity Sai and The Hartford
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and The Hartford 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 The Hartford 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 The Hartford Growth, you can compare the effects of market volatilities on Fidelity Sai and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and The Hartford.
Diversification Opportunities for Fidelity Sai and The Hartford
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and The is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and The Hartford go up and down completely randomly.
Pair Corralation between Fidelity Sai and The Hartford
Assuming the 90 days horizon Fidelity Sai is expected to generate 7.07 times less return on investment than The Hartford. But when comparing it to its historical volatility, Fidelity Sai Convertible is 12.19 times less risky than The Hartford. It trades about 0.6 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 5,379 in The Hartford Growth on September 1, 2024 and sell it today you would earn a total of 392.00 from holding The Hartford Growth or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. The Hartford Growth
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Hartford Growth |
Fidelity Sai and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and The Hartford
The main advantage of trading using opposite Fidelity Sai and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Fidelity Sai vs. Fidelity Freedom 2015 | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Pennsylvania Municipal |
| The Hartford vs. Allianzgi Convertible Income | The Hartford vs. The Gamco Global | The Hartford vs. Fidelity Sai Convertible | The Hartford vs. Lord Abbett Convertible |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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