Correlation Between Fidelity Series and Fidelity Magellan
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Fidelity Magellan 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 Fidelity Magellan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Investment and Fidelity Magellan Fund, you can compare the effects of market volatilities on Fidelity Series and Fidelity Magellan 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 Fidelity Magellan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Fidelity Magellan.
Diversification Opportunities for Fidelity Series and Fidelity Magellan
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Fidelity is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Investment and Fidelity Magellan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Magellan 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 Investment are associated (or correlated) with Fidelity Magellan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Magellan has no effect on the direction of Fidelity Series i.e., Fidelity Series and Fidelity Magellan go up and down completely randomly.
Pair Corralation between Fidelity Series and Fidelity Magellan
Assuming the 90 days horizon Fidelity Series is expected to generate 5.02 times less return on investment than Fidelity Magellan. But when comparing it to its historical volatility, Fidelity Series Investment is 2.54 times less risky than Fidelity Magellan. It trades about 0.04 of its potential returns per unit of risk. Fidelity Magellan Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Fidelity Magellan Fund on August 28, 2024 and sell it today you would earn a total of 491.00 from holding Fidelity Magellan Fund or generate 45.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fidelity Series Investment vs. Fidelity Magellan Fund
Performance |
| Timeline |
| Fidelity Series Inve |
| Fidelity Magellan |
Fidelity Series and Fidelity Magellan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Fidelity Magellan
The main advantage of trading using opposite Fidelity Series and Fidelity Magellan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Fidelity Magellan 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 Fidelity Magellan will offset losses from the drop in Fidelity Magellan's long position.| Fidelity Series vs. Siit Emerging Markets | Fidelity Series vs. Transamerica Emerging Markets | Fidelity Series vs. Rbc Bluebay Emerging | Fidelity Series vs. Western Assets Emerging |
| Fidelity Magellan vs. Fidelity Growth Income | Fidelity Magellan vs. Fidelity Equity Income Fund | Fidelity Magellan vs. Fidelity Contrafund | Fidelity Magellan vs. Fidelity Growth Pany |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |