Correlation Between NYSE Composite and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Fidelity Managed 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 Managed 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 Managed Retirement, you can compare the effects of market volatilities on NYSE Composite and Fidelity Managed 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 Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Fidelity Managed.
Diversification Opportunities for NYSE Composite and Fidelity Managed
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between NYSE and Fidelity is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Fidelity Managed Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Managed Ret 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 Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Managed Ret has no effect on the direction of NYSE Composite i.e., NYSE Composite and Fidelity Managed go up and down completely randomly.
Pair Corralation between NYSE Composite and Fidelity Managed
Assuming the 90 days trading horizon NYSE Composite is expected to generate 2.3 times more return on investment than Fidelity Managed. However, NYSE Composite is 2.3 times more volatile than Fidelity Managed Retirement. It trades about 0.08 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.07 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 26, 2024 and sell it today you would earn a total of 464,866 from holding NYSE Composite or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Fidelity Managed Retirement
Performance |
| Timeline |
NYSE Composite and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Fidelity Managed Retirement
Pair trading matchups for Fidelity Managed
Pair Trading with NYSE Composite and Fidelity Managed
The main advantage of trading using opposite NYSE Composite and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Fidelity Managed 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 Managed will offset losses from the drop in Fidelity Managed's long position.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| Fidelity Managed vs. The Hartford Small | Fidelity Managed vs. Qs Small Capitalization | Fidelity Managed vs. Tax Managed Mid Small | Fidelity Managed vs. Small Pany Growth |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |