Correlation Between Fidelity Sai and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Tekla Healthcare 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 Tekla Healthcare 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 Tekla Healthcare Investors, you can compare the effects of market volatilities on Fidelity Sai and Tekla Healthcare 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 Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Tekla Healthcare.
Diversification Opportunities for Fidelity Sai and Tekla Healthcare
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Tekla is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv 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 Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Fidelity Sai and Tekla Healthcare
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 0.09 times more return on investment than Tekla Healthcare. However, Fidelity Sai Convertible is 10.54 times less risky than Tekla Healthcare. It trades about 0.2 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.02 per unit of risk. If you would invest 1,052 in Fidelity Sai Convertible on October 24, 2024 and sell it today you would earn a total of 3.00 from holding Fidelity Sai Convertible or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Tekla Healthcare Inv |
Fidelity Sai and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Tekla Healthcare
The main advantage of trading using opposite Fidelity Sai and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Fidelity Sai vs. Rbc Bluebay Global | Fidelity Sai vs. Alliancebernstein Global Highome | Fidelity Sai vs. Gmo Global Equity | Fidelity Sai vs. Aqr Global Macro |
| Tekla Healthcare vs. Fidelity Sai Convertible | Tekla Healthcare vs. Lord Abbett Convertible | Tekla Healthcare vs. Calamos Dynamic Convertible | Tekla Healthcare vs. Virtus Convertible |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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