Correlation Between Fidelity Sai and Pace High
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Pace High 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 High 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 High Yield, you can compare the effects of market volatilities on Fidelity Sai and Pace High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Pace High.
Diversification Opportunities for Fidelity Sai and Pace High
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Pace is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Pace High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace High Yield 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 High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace High Yield has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Pace High go up and down completely randomly.
Pair Corralation between Fidelity Sai and Pace High
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.1 times less return on investment than Pace High. But when comparing it to its historical volatility, Fidelity Sai Convertible is 1.29 times less risky than Pace High. It trades about 0.29 of its potential returns per unit of risk. Pace High Yield is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 793.00 in Pace High Yield on September 21, 2024 and sell it today you would earn a total of 100.00 from holding Pace High Yield or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Pace High Yield
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Pace High Yield |
Fidelity Sai and Pace High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Pace High
The main advantage of trading using opposite Fidelity Sai and Pace High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Pace High 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 High will offset losses from the drop in Pace High's long position.| Fidelity Sai vs. Fidelity Freedom 2015 | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Puritan Fund | Fidelity Sai vs. Fidelity Pennsylvania Municipal |
| Pace High vs. Gabelli Convertible And | Pace High vs. Putnam Convertible Incm Gwth | Pace High vs. Fidelity Sai Convertible | Pace High vs. Lord Abbett 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |