Correlation Between Fidelity Trend and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Fidelity Trend and Tekla Healthcare 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 Trend and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Trend Fund and Tekla Healthcare Investors, you can compare the effects of market volatilities on Fidelity Trend and Tekla Healthcare 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 Trend with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Trend and Tekla Healthcare.
Diversification Opportunities for Fidelity Trend and Tekla Healthcare
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Tekla is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Trend Fund and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv and Fidelity Trend 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 Trend Fund are associated (or correlated) with Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Fidelity Trend i.e., Fidelity Trend and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Fidelity Trend and Tekla Healthcare
Assuming the 90 days horizon Fidelity Trend Fund is expected to generate 1.58 times more return on investment than Tekla Healthcare. However, Fidelity Trend is 1.58 times more volatile than Tekla Healthcare Investors. It trades about 0.12 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.01 per unit of risk. If you would invest 10,193 in Fidelity Trend Fund on September 14, 2024 and sell it today you would earn a total of 11,729 from holding Fidelity Trend Fund or generate 115.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Trend Fund vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Fidelity Trend |
| Tekla Healthcare Inv |
Fidelity Trend and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Trend and Tekla Healthcare
The main advantage of trading using opposite Fidelity Trend and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Trend position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Fidelity Trend vs. Fidelity Stock Selector | Fidelity Trend vs. Fidelity Focused Stock | Fidelity Trend vs. Fidelity Disciplined Equity | Fidelity Trend vs. Fidelity Stock Selector |
| Tekla Healthcare vs. Calvert Developed Market | Tekla Healthcare vs. Siit Emerging Markets | Tekla Healthcare vs. Pnc Emerging Markets | Tekla Healthcare vs. Investec 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |