Correlation Between Fidelity Sai and Amg Southernsun
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Amg Southernsun 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 Amg Southernsun 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 Amg Southernsun Equity, you can compare the effects of market volatilities on Fidelity Sai and Amg Southernsun 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 Amg Southernsun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Amg Southernsun.
Diversification Opportunities for Fidelity Sai and Amg Southernsun
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Amg is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Amg Southernsun Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Southernsun 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 Amg Southernsun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Southernsun Equity has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Amg Southernsun go up and down completely randomly.
Pair Corralation between Fidelity Sai and Amg Southernsun
Assuming the 90 days horizon Fidelity Sai is expected to generate 3.46 times less return on investment than Amg Southernsun. But when comparing it to its historical volatility, Fidelity Sai Convertible is 13.36 times less risky than Amg Southernsun. It trades about 0.55 of its potential returns per unit of risk. Amg Southernsun Equity is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,281 in Amg Southernsun Equity on November 9, 2024 and sell it today you would earn a total of 37.00 from holding Amg Southernsun Equity or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Amg Southernsun Equity
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Amg Southernsun Equity |
Fidelity Sai and Amg Southernsun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Amg Southernsun
The main advantage of trading using opposite Fidelity Sai and Amg Southernsun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Amg Southernsun 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 Amg Southernsun will offset losses from the drop in Amg Southernsun's long position.| Fidelity Sai vs. Icon Information Technology | Fidelity Sai vs. Hennessy Technology Fund | Fidelity Sai vs. Global Technology Portfolio | Fidelity Sai vs. Technology Ultrasector Profund |
| Amg Southernsun vs. Elfun Government Money | Amg Southernsun vs. Aig Government Money | Amg Southernsun vs. Dws Government Money |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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