Correlation Between Fidelity Sai and Stringer Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Stringer Growth 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 Stringer Growth 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 Stringer Growth Fund, you can compare the effects of market volatilities on Fidelity Sai and Stringer Growth 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 Stringer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Stringer Growth.
Diversification Opportunities for Fidelity Sai and Stringer Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and STRINGER is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Stringer Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stringer Growth 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 Stringer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stringer Growth has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Stringer Growth go up and down completely randomly.
Pair Corralation between Fidelity Sai and Stringer Growth
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.08 times less return on investment than Stringer Growth. But when comparing it to its historical volatility, Fidelity Sai Convertible is 4.87 times less risky than Stringer Growth. It trades about 0.46 of its potential returns per unit of risk. Stringer Growth Fund is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,247 in Stringer Growth Fund on September 2, 2024 and sell it today you would earn a total of 37.00 from holding Stringer Growth Fund or generate 2.97% 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. Stringer Growth Fund
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Stringer Growth |
Fidelity Sai and Stringer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Stringer Growth
The main advantage of trading using opposite Fidelity Sai and Stringer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Stringer Growth 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 Stringer Growth will offset losses from the drop in Stringer Growth'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 |
| Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Pimco Income Strategy | Stringer Growth vs. Vanguard 500 Index |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |