Correlation Between Fidelity Sai and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Federated Strategic 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 Federated Strategic 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 Federated Strategic Income, you can compare the effects of market volatilities on Fidelity Sai and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Federated Strategic.
Diversification Opportunities for Fidelity Sai and Federated Strategic
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and Federated is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Federated Strategic go up and down completely randomly.
Pair Corralation between Fidelity Sai and Federated Strategic
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.31 times less return on investment than Federated Strategic. But when comparing it to its historical volatility, Fidelity Sai Convertible is 3.93 times less risky than Federated Strategic. It trades about 0.65 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 809.00 in Federated Strategic Income on November 4, 2024 and sell it today you would earn a total of 9.00 from holding Federated Strategic Income or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Federated Strategic Income
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Federated Strategic |
Fidelity Sai and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Federated Strategic
The main advantage of trading using opposite Fidelity Sai and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic'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 |
| Federated Strategic vs. Cmg Ultra Short | Federated Strategic vs. Transamerica Short Term Bond | Federated Strategic vs. Touchstone Ultra Short | Federated Strategic vs. Virtus Multi Sector Short |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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