Correlation Between Fidelity Flex and Voya High
Can any of the company-specific risk be diversified away by investing in both Fidelity Flex and Voya 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 Flex and Voya High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Flex Servative and Voya High Yield, you can compare the effects of market volatilities on Fidelity Flex and Voya 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 Flex with a short position of Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Flex and Voya High.
Diversification Opportunities for Fidelity Flex and Voya High
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Voya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Flex Servative and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield and Fidelity Flex 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 Flex Servative are associated (or correlated) with Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Fidelity Flex i.e., Fidelity Flex and Voya High go up and down completely randomly.
Pair Corralation between Fidelity Flex and Voya High
Assuming the 90 days horizon Fidelity Flex is expected to generate 5.7 times less return on investment than Voya High. But when comparing it to its historical volatility, Fidelity Flex Servative is 4.33 times less risky than Voya High. It trades about 0.13 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 872.00 in Voya High Yield on November 4, 2024 and sell it today you would earn a total of 5.00 from holding Voya High Yield or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Flex Servative vs. Voya High Yield
Performance |
| Timeline |
| Fidelity Flex Servative |
| Voya High Yield |
Fidelity Flex and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Flex and Voya High
The main advantage of trading using opposite Fidelity Flex and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Flex position performs unexpectedly, Voya 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 Voya High will offset losses from the drop in Voya High's long position.| Fidelity Flex vs. Touchstone Large Cap | Fidelity Flex vs. Vest Large Cap | Fidelity Flex vs. Oakmark Fund Investor | Fidelity Flex vs. Calvert Large Cap |
| Voya High vs. Transamerica Intermediate Muni | Voya High vs. Morningstar Municipal Bond | Voya High vs. Baird Quality Intermediate | Voya High vs. Jpmorgan Ultra Short 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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