Correlation Between Fidelity Small and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Mfs Blended 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 Small and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Mfs Blended Research, you can compare the effects of market volatilities on Fidelity Small and Mfs Blended 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 Small with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Mfs Blended.
Diversification Opportunities for Fidelity Small and Mfs Blended
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Mfs is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Fidelity Small 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 Small Cap are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Fidelity Small i.e., Fidelity Small and Mfs Blended go up and down completely randomly.
Pair Corralation between Fidelity Small and Mfs Blended
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 1.03 times more return on investment than Mfs Blended. However, Fidelity Small is 1.03 times more volatile than Mfs Blended Research. It trades about 0.08 of its potential returns per unit of risk. Mfs Blended Research is currently generating about 0.06 per unit of risk. If you would invest 2,540 in Fidelity Small Cap on September 1, 2024 and sell it today you would earn a total of 503.00 from holding Fidelity Small Cap or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Mfs Blended Research
Performance |
| Timeline |
| Fidelity Small Cap |
| Mfs Blended Research |
Fidelity Small and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Mfs Blended
The main advantage of trading using opposite Fidelity Small and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Mfs Blended 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 Mfs Blended will offset losses from the drop in Mfs Blended's long position.| Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity International Index | Fidelity Small vs. Fidelity Bond Index | Fidelity Small vs. Fidelity Large Cap |
| Mfs Blended vs. Valic Company I | Mfs Blended vs. Gmo High Yield | Mfs Blended vs. Msift High Yield | Mfs Blended vs. American Century High |
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 CEOs Directory module to screen CEOs from public companies around the world.
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