Correlation Between Fidelity Emerging and Standpoint Multi
Can any of the company-specific risk be diversified away by investing in both Fidelity Emerging and Standpoint Multi 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 Emerging and Standpoint Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Emerging Asia and Standpoint Multi Asset, you can compare the effects of market volatilities on Fidelity Emerging and Standpoint Multi 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 Emerging with a short position of Standpoint Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Emerging and Standpoint Multi.
Diversification Opportunities for Fidelity Emerging and Standpoint Multi
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Standpoint is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Emerging Asia and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset and Fidelity Emerging 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 Emerging Asia are associated (or correlated) with Standpoint Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Fidelity Emerging i.e., Fidelity Emerging and Standpoint Multi go up and down completely randomly.
Pair Corralation between Fidelity Emerging and Standpoint Multi
Assuming the 90 days horizon Fidelity Emerging Asia is expected to generate 1.7 times more return on investment than Standpoint Multi. However, Fidelity Emerging is 1.7 times more volatile than Standpoint Multi Asset. It trades about 0.08 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.07 per unit of risk. If you would invest 3,461 in Fidelity Emerging Asia on September 13, 2024 and sell it today you would earn a total of 1,640 from holding Fidelity Emerging Asia or generate 47.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Fidelity Emerging Asia vs. Standpoint Multi Asset
Performance |
| Timeline |
| Fidelity Emerging Asia |
| Standpoint Multi Asset |
Fidelity Emerging and Standpoint Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Emerging and Standpoint Multi
The main advantage of trading using opposite Fidelity Emerging and Standpoint Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Emerging position performs unexpectedly, Standpoint Multi 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 Standpoint Multi will offset losses from the drop in Standpoint Multi's long position.| Fidelity Emerging vs. Fidelity China Region | Fidelity Emerging vs. Fidelity Emerging Markets | Fidelity Emerging vs. Fidelity Canada Fund | Fidelity Emerging vs. Fidelity Pacific Basin |
| Standpoint Multi vs. Standpoint Multi Asset | Standpoint Multi vs. Pimco Income Strategy | Standpoint Multi vs. Fidelity Emerging Asia | Standpoint Multi vs. Vanguard Windsor Fund |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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