Correlation Between James Balanced and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both James Balanced and Fidelity Freedom 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 James Balanced and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between James Balanced Golden and Fidelity Freedom Blend, you can compare the effects of market volatilities on James Balanced and Fidelity Freedom 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 James Balanced with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of James Balanced and Fidelity Freedom.
Diversification Opportunities for James Balanced and Fidelity Freedom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between James and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding James Balanced Golden and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend and James Balanced 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 James Balanced Golden are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of James Balanced i.e., James Balanced and Fidelity Freedom go up and down completely randomly.
Pair Corralation between James Balanced and Fidelity Freedom
Assuming the 90 days horizon James Balanced Golden is expected to generate 1.41 times more return on investment than Fidelity Freedom. However, James Balanced is 1.41 times more volatile than Fidelity Freedom Blend. It trades about 0.12 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.12 per unit of risk. If you would invest 1,966 in James Balanced Golden on September 15, 2024 and sell it today you would earn a total of 305.00 from holding James Balanced Golden or generate 15.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
James Balanced Golden vs. Fidelity Freedom Blend
Performance |
| Timeline |
| James Balanced Golden |
| Fidelity Freedom Blend |
James Balanced and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with James Balanced and Fidelity Freedom
The main advantage of trading using opposite James Balanced and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if James Balanced position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.| James Balanced vs. Permanent Portfolio Class | James Balanced vs. Berwyn Income Fund | James Balanced vs. Large Cap Fund | James Balanced vs. Westcore Plus Bond |
| Fidelity Freedom vs. Franklin Gold Precious | Fidelity Freedom vs. James Balanced Golden | Fidelity Freedom vs. Vy Goldman Sachs | Fidelity Freedom vs. Europac Gold 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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