Correlation Between Fidelity Sai and Voya Global
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Voya Global 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 Global 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 Global Equity, you can compare the effects of market volatilities on Fidelity Sai and Voya Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Voya Global.
Diversification Opportunities for Fidelity Sai and Voya Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Voya is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Voya Global go up and down completely randomly.
Pair Corralation between Fidelity Sai and Voya Global
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.66 times less return on investment than Voya Global. But when comparing it to its historical volatility, Fidelity Sai Convertible is 5.42 times less risky than Voya Global. It trades about 0.46 of its potential returns per unit of risk. Voya Global Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 4,245 in Voya Global Equity on September 2, 2024 and sell it today you would earn a total of 196.00 from holding Voya Global Equity or generate 4.62% 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. Voya Global Equity
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Voya Global Equity |
Fidelity Sai and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Voya Global
The main advantage of trading using opposite Fidelity Sai and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Voya Global 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 Global will offset losses from the drop in Voya Global's long position.| Fidelity Sai vs. Chase Growth Fund | Fidelity Sai vs. Small Midcap Dividend Income | Fidelity Sai vs. Vanguard Growth And | Fidelity Sai vs. Qs Growth Fund |
| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |