Correlation Between Jacob Internet and Fidelity Flex
Can any of the company-specific risk be diversified away by investing in both Jacob Internet and Fidelity Flex 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 Jacob Internet and Fidelity Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacob Internet Fund and Fidelity Flex Mid, you can compare the effects of market volatilities on Jacob Internet and Fidelity Flex 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 Jacob Internet with a short position of Fidelity Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacob Internet and Fidelity Flex.
Diversification Opportunities for Jacob Internet and Fidelity Flex
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacob and Fidelity is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jacob Internet Fund and Fidelity Flex Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex Mid and Jacob Internet 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 Jacob Internet Fund are associated (or correlated) with Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex Mid has no effect on the direction of Jacob Internet i.e., Jacob Internet and Fidelity Flex go up and down completely randomly.
Pair Corralation between Jacob Internet and Fidelity Flex
Assuming the 90 days horizon Jacob Internet is expected to generate 1.7 times less return on investment than Fidelity Flex. In addition to that, Jacob Internet is 2.65 times more volatile than Fidelity Flex Mid. It trades about 0.06 of its total potential returns per unit of risk. Fidelity Flex Mid is currently generating about 0.26 per unit of volatility. If you would invest 1,867 in Fidelity Flex Mid on October 20, 2024 and sell it today you would earn a total of 79.00 from holding Fidelity Flex Mid or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacob Internet Fund vs. Fidelity Flex Mid
Performance |
| Timeline |
| Jacob Internet |
| Fidelity Flex Mid |
Jacob Internet and Fidelity Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacob Internet and Fidelity Flex
The main advantage of trading using opposite Jacob Internet and Fidelity Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacob Internet position performs unexpectedly, Fidelity Flex 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 Flex will offset losses from the drop in Fidelity Flex's long position.| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
| Fidelity Flex vs. Fidelity Freedom 2015 | Fidelity Flex vs. Fidelity Puritan Fund | Fidelity Flex vs. Fidelity Puritan Fund | Fidelity Flex vs. Fidelity Pennsylvania 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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