Correlation Between Fidelity Asset and Dunham High
Can any of the company-specific risk be diversified away by investing in both Fidelity Asset and Dunham High 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 Asset and Dunham High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Asset Manager and Dunham High Yield, you can compare the effects of market volatilities on Fidelity Asset and Dunham High 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 Asset with a short position of Dunham High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Asset and Dunham High.
Diversification Opportunities for Fidelity Asset and Dunham High
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Dunham is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Asset Manager and Dunham High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham High Yield and Fidelity Asset 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 Asset Manager are associated (or correlated) with Dunham High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham High Yield has no effect on the direction of Fidelity Asset i.e., Fidelity Asset and Dunham High go up and down completely randomly.
Pair Corralation between Fidelity Asset and Dunham High
Assuming the 90 days horizon Fidelity Asset Manager is expected to generate 1.88 times more return on investment than Dunham High. However, Fidelity Asset is 1.88 times more volatile than Dunham High Yield. It trades about 0.32 of its potential returns per unit of risk. Dunham High Yield is currently generating about 0.39 per unit of risk. If you would invest 1,365 in Fidelity Asset Manager on September 1, 2024 and sell it today you would earn a total of 24.00 from holding Fidelity Asset Manager or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Asset Manager vs. Dunham High Yield
Performance |
| Timeline |
| Fidelity Asset Manager |
| Dunham High Yield |
Fidelity Asset and Dunham High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Asset and Dunham High
The main advantage of trading using opposite Fidelity Asset and Dunham High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Asset position performs unexpectedly, Dunham High 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 Dunham High will offset losses from the drop in Dunham High's long position.| Fidelity Asset vs. Dunham High Yield | Fidelity Asset vs. Valic Company I | Fidelity Asset vs. Alpine High Yield | Fidelity Asset vs. Western Asset High |
| Dunham High vs. Dunham Dynamic Macro | Dunham High vs. Dunham Porategovernment Bond | Dunham High vs. Dunham Small Cap | Dunham High vs. Dunham Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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