Correlation Between Fidelity Sai and Short Duration
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Short Duration 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 Short Duration 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 Short Duration Bond, you can compare the effects of market volatilities on Fidelity Sai and Short Duration 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 Short Duration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Short Duration.
Diversification Opportunities for Fidelity Sai and Short Duration
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Short is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Short Duration Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Duration Bond 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 Short Duration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Duration Bond has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Short Duration go up and down completely randomly.
Pair Corralation between Fidelity Sai and Short Duration
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 1.08 times more return on investment than Short Duration. However, Fidelity Sai is 1.08 times more volatile than Short Duration Bond. It trades about 0.37 of its potential returns per unit of risk. Short Duration Bond is currently generating about 0.17 per unit of risk. If you would invest 1,046 in Fidelity Sai Convertible on November 3, 2024 and sell it today you would earn a total of 15.00 from holding Fidelity Sai Convertible or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.56% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Short Duration Bond
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Short Duration Bond |
Fidelity Sai and Short Duration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Short Duration
The main advantage of trading using opposite Fidelity Sai and Short Duration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Short Duration 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 Short Duration will offset losses from the drop in Short Duration's long position.| Fidelity Sai vs. Rbc Global Equity | Fidelity Sai vs. Kinetics Global Fund | Fidelity Sai vs. Scharf Global Opportunity | Fidelity Sai vs. Commonwealth Global Fund |
| Short Duration vs. Multi Manager High Yield | Short Duration vs. Jpmorgan High Yield | Short Duration vs. Buffalo High Yield | Short Duration vs. Six Circles Credit |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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