Correlation Between Fidelity Flex and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Fidelity Flex and Cohen Steers 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 Cohen Steers 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 Cohen Steers Real, you can compare the effects of market volatilities on Fidelity Flex and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Flex and Cohen Steers.
Diversification Opportunities for Fidelity Flex and Cohen Steers
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Cohen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Flex Servative and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Fidelity Flex i.e., Fidelity Flex and Cohen Steers go up and down completely randomly.
Pair Corralation between Fidelity Flex and Cohen Steers
Assuming the 90 days horizon Fidelity Flex is expected to generate 21.94 times less return on investment than Cohen Steers. But when comparing it to its historical volatility, Fidelity Flex Servative is 11.83 times less risky than Cohen Steers. It trades about 0.13 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,002 in Cohen Steers Real on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Cohen Steers Real or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Flex Servative vs. Cohen Steers Real
Performance |
| Timeline |
| Fidelity Flex Servative |
| Cohen Steers Real |
Fidelity Flex and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Flex and Cohen Steers
The main advantage of trading using opposite Fidelity Flex and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Flex position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Fidelity Flex vs. Columbia Convertible Securities | Fidelity Flex vs. Rationalpier 88 Convertible | Fidelity Flex vs. Lord Abbett Convertible | Fidelity Flex vs. Calamos Dynamic Convertible |
| Cohen Steers vs. Adams Natural Resources | Cohen Steers vs. Clearbridge Energy Mlp | Cohen Steers vs. Vanguard Energy Index | Cohen Steers vs. Energy Services Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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