Correlation Between Federated Global and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Federated Global and Fidelity Series 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 Federated Global and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Total and Fidelity Series Government, you can compare the effects of market volatilities on Federated Global and Fidelity Series 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 Federated Global with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Fidelity Series.
Diversification Opportunities for Federated Global and Fidelity Series
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Fidelity is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Total and Fidelity Series Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Gove and Federated Global 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 Federated Global Total are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Gove has no effect on the direction of Federated Global i.e., Federated Global and Fidelity Series go up and down completely randomly.
Pair Corralation between Federated Global and Fidelity Series
Assuming the 90 days horizon Federated Global Total is expected to generate 1.29 times more return on investment than Fidelity Series. However, Federated Global is 1.29 times more volatile than Fidelity Series Government. It trades about 0.05 of its potential returns per unit of risk. Fidelity Series Government is currently generating about 0.06 per unit of risk. If you would invest 786.00 in Federated Global Total on September 1, 2024 and sell it today you would earn a total of 4.00 from holding Federated Global Total or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Global Total vs. Fidelity Series Government
Performance |
| Timeline |
| Federated Global Total |
| Fidelity Series Gove |
Federated Global and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Fidelity Series
The main advantage of trading using opposite Federated Global and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Federated Global vs. Federated Emerging Market | Federated Global vs. Federated Mdt All | Federated Global vs. Federated Mdt Balanced | Federated Global vs. Federated Global Allocation |
| Fidelity Series vs. Fidelity Freedom 2015 | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Puritan Fund | Fidelity Series vs. Fidelity Pennsylvania Municipal |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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