Correlation Between Fidelity Sai and Voya International
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Voya 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 Voya 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 Voya International Index, you can compare the effects of market volatilities on Fidelity Sai and Voya 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 Voya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Voya International.
Diversification Opportunities for Fidelity Sai and Voya International
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fidelity and Voya is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International Index 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 Voya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Voya International go up and down completely randomly.
Pair Corralation between Fidelity Sai and Voya International
Assuming the 90 days horizon Fidelity Sai is expected to generate 7.6 times less return on investment than Voya International. But when comparing it to its historical volatility, Fidelity Sai Convertible is 11.43 times less risky than Voya International. It trades about 0.61 of its potential returns per unit of risk. Voya International Index is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,099 in Voya International Index on November 2, 2024 and sell it today you would earn a total of 68.00 from holding Voya International Index or generate 6.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Voya International Index
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Voya International Index |
Fidelity Sai and Voya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Voya International
The main advantage of trading using opposite Fidelity Sai and Voya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Voya 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 Voya International will offset losses from the drop in Voya International's long position.| Fidelity Sai vs. Gabelli Gold Fund | Fidelity Sai vs. Global Gold Fund | Fidelity Sai vs. International Investors Gold | Fidelity Sai vs. Precious Metals Fund |
| Voya International vs. Gabelli Convertible And | Voya International vs. Lord Abbett Convertible | Voya International vs. Rationalpier 88 Convertible | Voya International vs. Advent Claymore 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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