Correlation Between NYSE Composite and Fidelity Founders
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Fidelity Founders 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 Founders 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 Founders, you can compare the effects of market volatilities on NYSE Composite and Fidelity Founders 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 Founders. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fidelity Founders.
Diversification Opportunities for NYSE Composite and Fidelity Founders
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Fidelity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fidelity Founders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Founders 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 Founders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Founders has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fidelity Founders go up and down completely randomly.
Pair Corralation between NYSE Composite and Fidelity Founders
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.78 times less return on investment than Fidelity Founders. But when comparing it to its historical volatility, NYSE Composite is 1.55 times less risky than Fidelity Founders. It trades about 0.08 of its potential returns per unit of risk. Fidelity Founders is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,495 in Fidelity Founders on November 28, 2024 and sell it today you would earn a total of 844.00 from holding Fidelity Founders or generate 56.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Fidelity Founders
Performance |
| Timeline |
NYSE Composite and Fidelity Founders Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fidelity Founders
Pair trading matchups for Fidelity Founders
Pair Trading with NYSE Composite and Fidelity Founders
The main advantage of trading using opposite NYSE Composite and Fidelity Founders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Fidelity Founders 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 Founders will offset losses from the drop in Fidelity Founders' long position.| NYSE Composite vs. Inter Parfums | NYSE Composite vs. Amkor Technology | NYSE Composite vs. Unilever PLC ADR | NYSE Composite vs. Estee Lauder Companies |
| Fidelity Founders vs. Fidelity Advisor Stock | Fidelity Founders vs. Fidelity Intl Sustainability | Fidelity Founders vs. Fidelity Global Equity | Fidelity Founders vs. Fidelity Sustainability Bond |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |