Correlation Between Fidelity Sai and Miller Opportunity
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Miller Opportunity 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 Miller Opportunity 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 Miller Opportunity Trust, you can compare the effects of market volatilities on Fidelity Sai and Miller Opportunity 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 Miller Opportunity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Miller Opportunity.
Diversification Opportunities for Fidelity Sai and Miller Opportunity
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Miller is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Miller Opportunity Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miller Opportunity Trust 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 Miller Opportunity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miller Opportunity Trust has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Miller Opportunity go up and down completely randomly.
Pair Corralation between Fidelity Sai and Miller Opportunity
Assuming the 90 days horizon Fidelity Sai is expected to generate 5.72 times less return on investment than Miller Opportunity. But when comparing it to its historical volatility, Fidelity Sai Convertible is 12.47 times less risky than Miller Opportunity. It trades about 0.41 of its potential returns per unit of risk. Miller Opportunity Trust is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,382 in Miller Opportunity Trust on November 3, 2024 and sell it today you would earn a total of 1,061 from holding Miller Opportunity Trust or generate 31.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Miller Opportunity Trust
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Miller Opportunity Trust |
Fidelity Sai and Miller Opportunity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Miller Opportunity
The main advantage of trading using opposite Fidelity Sai and Miller Opportunity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Miller Opportunity 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 Miller Opportunity will offset losses from the drop in Miller Opportunity's long position.| Fidelity Sai vs. World Energy Fund | Fidelity Sai vs. Fidelity Advisor Energy | Fidelity Sai vs. Franklin Natural Resources | Fidelity Sai vs. Goehring Rozencwajg Resources |
| Miller Opportunity vs. Abbey Capital Futures | Miller Opportunity vs. Tiaa Cref Inflation Linked Bond | Miller Opportunity vs. Ab Bond Inflation | Miller Opportunity vs. Ab Bond Inflation |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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