Correlation Between Oracle and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Oracle and Fidelity Freedom 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 Oracle and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Fidelity Freedom Blend, you can compare the effects of market volatilities on Oracle and Fidelity Freedom 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 Oracle with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Fidelity Freedom.
Diversification Opportunities for Oracle and Fidelity Freedom
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oracle and FIDELITY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend and Oracle 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 Oracle are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Oracle i.e., Oracle and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Oracle and Fidelity Freedom
Given the investment horizon of 90 days Oracle is expected to generate 4.39 times more return on investment than Fidelity Freedom. However, Oracle is 4.39 times more volatile than Fidelity Freedom Blend. It trades about 0.1 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.08 per unit of risk. If you would invest 7,791 in Oracle on September 5, 2024 and sell it today you would earn a total of 10,498 from holding Oracle or generate 134.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Oracle vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Oracle |
| Fidelity Freedom Blend |
Oracle and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Fidelity Freedom
The main advantage of trading using opposite Oracle and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Fidelity Freedom vs. Lord Abbett Health | Fidelity Freedom vs. Health Biotchnology Portfolio | Fidelity Freedom vs. John Hancock Var | Fidelity Freedom vs. Deutsche Health And |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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