Correlation Between NYSE Composite and Fidelity Growth
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Fidelity Growth 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 NYSE Composite and Fidelity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Fidelity Growth Pany, you can compare the effects of market volatilities on NYSE Composite and Fidelity Growth 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 NYSE Composite with a short position of Fidelity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fidelity Growth.
Diversification Opportunities for NYSE Composite and Fidelity Growth
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Fidelity is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fidelity Growth Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Pany and NYSE Composite 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 NYSE Composite are associated (or correlated) with Fidelity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Growth Pany has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fidelity Growth go up and down completely randomly.
Pair Corralation between NYSE Composite and Fidelity Growth
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.98 times less return on investment than Fidelity Growth. But when comparing it to its historical volatility, NYSE Composite is 1.7 times less risky than Fidelity Growth. It trades about 0.08 of its potential returns per unit of risk. Fidelity Growth Pany is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,592 in Fidelity Growth Pany on August 24, 2024 and sell it today you would earn a total of 1,710 from holding Fidelity Growth Pany or generate 65.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Fidelity Growth Pany
Performance |
| Timeline |
NYSE Composite and Fidelity Growth Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fidelity Growth Pany
Pair trading matchups for Fidelity Growth
Pair Trading with NYSE Composite and Fidelity Growth
The main advantage of trading using opposite NYSE Composite and Fidelity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Fidelity Growth 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 Growth will offset losses from the drop in Fidelity Growth's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Fidelity Growth vs. Fidelity Low Priced Stock | Fidelity Growth vs. Fidelity Contrafund | Fidelity Growth vs. Fidelity Diversified International | Fidelity Growth vs. Fidelity Blue Chip |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |