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 Opportunities, 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
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and Fidelity is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fidelity Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Oppo 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 Oppo 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 2.14 times less return on investment than Fidelity Growth. But when comparing it to its historical volatility, NYSE Composite is 1.69 times less risky than Fidelity Growth. It trades about 0.08 of its potential returns per unit of risk. Fidelity Growth Opportunities is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,306 in Fidelity Growth Opportunities on August 29, 2024 and sell it today you would earn a total of 804.00 from holding Fidelity Growth Opportunities or generate 61.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 83.87% |
| Values | Daily Returns |
NYSE Composite vs. Fidelity Growth Opportunities
Performance |
| Timeline |
NYSE Composite and Fidelity Growth Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fidelity Growth Opportunities
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. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Fidelity Growth vs. Fidelity Covington Trust | Fidelity Growth vs. Fidelity Real Estate | Fidelity Growth vs. Fidelity Blue Chip | 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |