Correlation Between Fidelity Sai and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Mainstay Large 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 Mainstay Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Fidelity Sai and Mainstay Large 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 Mainstay Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Mainstay Large.
Diversification Opportunities for Fidelity Sai and Mainstay Large
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Mainstay is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Mainstay Large go up and down completely randomly.
Pair Corralation between Fidelity Sai and Mainstay Large
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.04 times more return on investment than Mainstay Large. However, Fidelity Sai Convertible is 25.68 times less risky than Mainstay Large. It trades about 0.44 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about -0.08 per unit of risk. If you would invest 1,079 in Fidelity Sai Convertible on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Fidelity Sai Convertible or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Mainstay Large Cap
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Mainstay Large Cap |
Fidelity Sai and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Mainstay Large
The main advantage of trading using opposite Fidelity Sai and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Mainstay Large 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 Mainstay Large will offset losses from the drop in Mainstay Large'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 |
| Mainstay Large vs. Oppenheimer Gold Special | Mainstay Large vs. James Balanced Golden | Mainstay Large vs. Europac Gold Fund | Mainstay Large vs. Gabelli Gold Fund |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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