Correlation Between Fidelity Sai and Western Asset
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Western Asset 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 Western Asset 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 Western Asset Managed, you can compare the effects of market volatilities on Fidelity Sai and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Western Asset.
Diversification Opportunities for Fidelity Sai and Western Asset
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Western is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Western Asset Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Managed 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Managed has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Western Asset go up and down completely randomly.
Pair Corralation between Fidelity Sai and Western Asset
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.42 times more return on investment than Western Asset. However, Fidelity Sai Convertible is 2.41 times less risky than Western Asset. It trades about 0.55 of its potential returns per unit of risk. Western Asset Managed is currently generating about 0.22 per unit of risk. If you would invest 1,060 in Fidelity Sai Convertible on November 29, 2024 and sell it today you would earn a total of 13.00 from holding Fidelity Sai Convertible or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Western Asset Managed
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Western Asset Managed |
Fidelity Sai and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Western Asset
The main advantage of trading using opposite Fidelity Sai and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Fidelity Sai vs. Touchstone Large Cap | Fidelity Sai vs. Wasatch Large Cap | Fidelity Sai vs. Avantis Large Cap | Fidelity Sai vs. Tiaa Cref Large Cap Growth |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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