Correlation Between NYSE Composite and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Fidelity Series 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 Series Government, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fidelity Series.
Diversification Opportunities for NYSE Composite and Fidelity Series
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Fidelity is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fidelity Series Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Gove 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 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 Gove has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fidelity Series go up and down completely randomly.
Pair Corralation between NYSE Composite and Fidelity Series
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.12 times more return on investment than Fidelity Series. However, NYSE Composite is 2.12 times more volatile than Fidelity Series Government. It trades about 0.09 of its potential returns per unit of risk. Fidelity Series Government is currently generating about 0.04 per unit of risk. If you would invest 1,721,232 in NYSE Composite on November 3, 2024 and sell it today you would earn a total of 278,650 from holding NYSE Composite or generate 16.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
NYSE Composite vs. Fidelity Series Government
Performance |
| Timeline |
NYSE Composite and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fidelity Series Government
Pair trading matchups for Fidelity Series
Pair Trading with NYSE Composite and Fidelity Series
The main advantage of trading using opposite NYSE Composite and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Arrow Electronics | NYSE Composite vs. Cirmaker Technology | NYSE Composite vs. Zhihu Inc ADR | NYSE Composite vs. Weibo Corp |
| Fidelity Series vs. Smallcap World Fund | Fidelity Series vs. Small Cap Equity | Fidelity Series vs. Us Vector Equity | Fidelity Series vs. Gmo Global Equity |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |