Correlation Between Fidelity Select and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Fidelity Select and Jacob Funds 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 Select and Jacob Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Select Semiconductors and Jacob Funds , you can compare the effects of market volatilities on Fidelity Select and Jacob Funds 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 Select with a short position of Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Select and Jacob Funds.
Diversification Opportunities for Fidelity Select and Jacob Funds
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Jacob is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Select Semiconductors and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds and Fidelity Select 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 Select Semiconductors are associated (or correlated) with Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Fidelity Select i.e., Fidelity Select and Jacob Funds go up and down completely randomly.
Pair Corralation between Fidelity Select and Jacob Funds
Assuming the 90 days horizon Fidelity Select Semiconductors is expected to generate 1.2 times more return on investment than Jacob Funds. However, Fidelity Select is 1.2 times more volatile than Jacob Funds . It trades about 0.08 of its potential returns per unit of risk. Jacob Funds is currently generating about 0.01 per unit of risk. If you would invest 1,689 in Fidelity Select Semiconductors on September 3, 2024 and sell it today you would earn a total of 1,740 from holding Fidelity Select Semiconductors or generate 103.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 56.97% |
| Values | Daily Returns |
Fidelity Select Semiconductors vs. Jacob Funds
Performance |
| Timeline |
| Fidelity Select Semi |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity Select and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Select and Jacob Funds
The main advantage of trading using opposite Fidelity Select and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Select position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Fidelity Select vs. Technology Portfolio Technology | Fidelity Select vs. Software And It | Fidelity Select vs. Computers Portfolio Puters | Fidelity Select vs. Health Care Portfolio |
| Jacob Funds vs. Global Technology Portfolio | Jacob Funds vs. Blackrock Science Technology | Jacob Funds vs. Dreyfus Technology Growth | Jacob Funds vs. Pgim Jennison Technology |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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