Correlation Between Goldman Sachs and Fidelity Contrafund
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Fidelity Contrafund 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 Goldman Sachs and Fidelity Contrafund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Centrated and Fidelity Trafund Class, you can compare the effects of market volatilities on Goldman Sachs and Fidelity Contrafund 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 Goldman Sachs with a short position of Fidelity Contrafund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Fidelity Contrafund.
Diversification Opportunities for Goldman Sachs and Fidelity Contrafund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goldman and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Centrated and Fidelity Trafund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Trafund Class and Goldman Sachs 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 Goldman Sachs Centrated are associated (or correlated) with Fidelity Contrafund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Trafund Class has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Fidelity Contrafund go up and down completely randomly.
Pair Corralation between Goldman Sachs and Fidelity Contrafund
Assuming the 90 days horizon Goldman Sachs Centrated is expected to under-perform the Fidelity Contrafund. In addition to that, Goldman Sachs is 1.59 times more volatile than Fidelity Trafund Class. It trades about -0.01 of its total potential returns per unit of risk. Fidelity Trafund Class is currently generating about 0.15 per unit of volatility. If you would invest 1,534 in Fidelity Trafund Class on September 1, 2024 and sell it today you would earn a total of 682.00 from holding Fidelity Trafund Class or generate 44.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Goldman Sachs Centrated vs. Fidelity Trafund Class
Performance |
| Timeline |
| Goldman Sachs Centrated |
| Fidelity Trafund Class |
Goldman Sachs and Fidelity Contrafund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Fidelity Contrafund
The main advantage of trading using opposite Goldman Sachs and Fidelity Contrafund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Fidelity Contrafund 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 Contrafund will offset losses from the drop in Fidelity Contrafund's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| Fidelity Contrafund vs. T Rowe Price | Fidelity Contrafund vs. Legg Mason Partners | Fidelity Contrafund vs. Kinetics Small Cap | Fidelity Contrafund vs. Jpmorgan Small Cap |
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 Stocks Directory module to find actively traded stocks across global markets.
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