Correlation Between Fidelity Sai and Pace Municipal
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Pace Municipal 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 Pace Municipal 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 Pace Municipal Fixed, you can compare the effects of market volatilities on Fidelity Sai and Pace Municipal 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 Pace Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Pace Municipal.
Diversification Opportunities for Fidelity Sai and Pace Municipal
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Pace is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Pace Municipal Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Municipal Fixed 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 Pace Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Municipal Fixed has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Pace Municipal go up and down completely randomly.
Pair Corralation between Fidelity Sai and Pace Municipal
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.78 times more return on investment than Pace Municipal. However, Fidelity Sai Convertible is 1.28 times less risky than Pace Municipal. It trades about 0.25 of its potential returns per unit of risk. Pace Municipal Fixed is currently generating about 0.07 per unit of risk. If you would invest 984.00 in Fidelity Sai Convertible on September 20, 2024 and sell it today you would earn a total of 118.00 from holding Fidelity Sai Convertible or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.85% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Pace Municipal Fixed
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Pace Municipal Fixed |
Fidelity Sai and Pace Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Pace Municipal
The main advantage of trading using opposite Fidelity Sai and Pace Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Pace Municipal 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 Pace Municipal will offset losses from the drop in Pace Municipal's long position.| Fidelity Sai vs. John Hancock Money | Fidelity Sai vs. Chestnut Street Exchange | Fidelity Sai vs. Blackrock Exchange Portfolio | Fidelity Sai vs. Ab Government Exchange |
| Pace Municipal vs. Fidelity Sai Convertible | Pace Municipal vs. Calamos Dynamic Convertible | Pace Municipal vs. Putnam Convertible Incm Gwth | Pace Municipal vs. Virtus 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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