Correlation Between Fidelity Series and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Old Westbury 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 Series and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Global and Old Westbury Large, you can compare the effects of market volatilities on Fidelity Series and Old Westbury 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 Series with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Old Westbury.
Diversification Opportunities for Fidelity Series and Old Westbury
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Old is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Global and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large and Fidelity Series 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 Series Global are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Large has no effect on the direction of Fidelity Series i.e., Fidelity Series and Old Westbury go up and down completely randomly.
Pair Corralation between Fidelity Series and Old Westbury
Assuming the 90 days horizon Fidelity Series is expected to generate 4.38 times less return on investment than Old Westbury. In addition to that, Fidelity Series is 1.09 times more volatile than Old Westbury Large. It trades about 0.02 of its total potential returns per unit of risk. Old Westbury Large is currently generating about 0.12 per unit of volatility. If you would invest 1,894 in Old Westbury Large on September 3, 2024 and sell it today you would earn a total of 256.00 from holding Old Westbury Large or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Global vs. Old Westbury Large
Performance |
| Timeline |
| Fidelity Series Global |
| Old Westbury Large |
Fidelity Series and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Old Westbury
The main advantage of trading using opposite Fidelity Series and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Old Westbury 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 Old Westbury will offset losses from the drop in Old Westbury's long position.| Fidelity Series vs. Vanguard Total International | Fidelity Series vs. Vanguard Total International | Fidelity Series vs. Vanguard Total International | Fidelity Series vs. Vanguard Total International |
| Old Westbury vs. American Funds New | Old Westbury vs. American Funds New | Old Westbury vs. New Perspective Fund | Old Westbury vs. New Perspective 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |