Correlation Between Longleaf Partners and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Longleaf Partners and Fidelity Series 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 Longleaf Partners and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Longleaf Partners Fund and Fidelity Series Real, you can compare the effects of market volatilities on Longleaf Partners and Fidelity Series 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 Longleaf Partners with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longleaf Partners and Fidelity Series.
Diversification Opportunities for Longleaf Partners and Fidelity Series
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Longleaf and Fidelity is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Longleaf Partners Fund and Fidelity Series Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Real and Longleaf Partners 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 Longleaf Partners Fund are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Real has no effect on the direction of Longleaf Partners i.e., Longleaf Partners and Fidelity Series go up and down completely randomly.
Pair Corralation between Longleaf Partners and Fidelity Series
Assuming the 90 days horizon Longleaf Partners Fund is expected to generate 2.87 times more return on investment than Fidelity Series. However, Longleaf Partners is 2.87 times more volatile than Fidelity Series Real. It trades about 0.06 of its potential returns per unit of risk. Fidelity Series Real is currently generating about 0.07 per unit of risk. If you would invest 2,540 in Longleaf Partners Fund on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Longleaf Partners Fund or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longleaf Partners Fund vs. Fidelity Series Real
Performance |
| Timeline |
| Longleaf Partners |
| Fidelity Series Real |
Longleaf Partners and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longleaf Partners and Fidelity Series
The main advantage of trading using opposite Longleaf Partners and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longleaf Partners position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Longleaf Partners vs. Small Cap Stock | Longleaf Partners vs. Guggenheim Diversified Income | Longleaf Partners vs. Tiaa Cref Small Cap Blend | Longleaf Partners vs. Huber Capital Diversified |
| Fidelity Series vs. Baird Smallmid Cap | Fidelity Series vs. Champlain Small | Fidelity Series vs. Ab Small Cap | Fidelity Series vs. Qs Small Capitalization |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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