Correlation Between Emerald Growth and Fidelity Small
Can any of the company-specific risk be diversified away by investing in both Emerald Growth and Fidelity Small 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 Emerald Growth and Fidelity Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Growth Fund and Fidelity Small Cap, you can compare the effects of market volatilities on Emerald Growth and Fidelity Small 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 Emerald Growth with a short position of Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Growth and Fidelity Small.
Diversification Opportunities for Emerald Growth and Fidelity Small
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Emerald and Fidelity is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Growth Fund and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Cap and Emerald Growth 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 Emerald Growth Fund are associated (or correlated) with Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of Emerald Growth i.e., Emerald Growth and Fidelity Small go up and down completely randomly.
Pair Corralation between Emerald Growth and Fidelity Small
Assuming the 90 days horizon Emerald Growth Fund is expected to generate 1.18 times more return on investment than Fidelity Small. However, Emerald Growth is 1.18 times more volatile than Fidelity Small Cap. It trades about 0.33 of its potential returns per unit of risk. Fidelity Small Cap is currently generating about 0.33 per unit of risk. If you would invest 1,666 in Emerald Growth Fund on September 1, 2024 and sell it today you would earn a total of 197.00 from holding Emerald Growth Fund or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerald Growth Fund vs. Fidelity Small Cap
Performance |
| Timeline |
| Emerald Growth |
| Fidelity Small Cap |
Emerald Growth and Fidelity Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerald Growth and Fidelity Small
The main advantage of trading using opposite Emerald Growth and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Growth position performs unexpectedly, Fidelity Small 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 Small will offset losses from the drop in Fidelity Small's long position.| Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Emerald Growth Fund | Emerald Growth vs. Emerald Banking And | Emerald Growth vs. Nuveen Small Cap |
| Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Advisor Mid | Fidelity Small vs. Fidelity Advisor Emerging | Fidelity Small vs. Fidelity 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |