Correlation Between Old Westbury and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Large and Fidelity Managed Retirement, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Fidelity Managed.
Diversification Opportunities for Old Westbury and Fidelity Managed
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Old and Fidelity is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Large 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 Old Westbury 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 Old Westbury Large 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 Old Westbury i.e., Old Westbury and Fidelity Managed go up and down completely randomly.
Pair Corralation between Old Westbury and Fidelity Managed
Assuming the 90 days horizon Old Westbury Large is expected to under-perform the Fidelity Managed. In addition to that, Old Westbury is 4.08 times more volatile than Fidelity Managed Retirement. It trades about -0.26 of its total potential returns per unit of risk. Fidelity Managed Retirement is currently generating about -0.39 per unit of volatility. If you would invest 5,666 in Fidelity Managed Retirement on October 13, 2024 and sell it today you would lose (149.00) from holding Fidelity Managed Retirement or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Large vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Old Westbury Large |
| Fidelity Managed Ret |
Old Westbury and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Fidelity Managed
The main advantage of trading using opposite Old Westbury and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Pace High Yield | Old Westbury vs. Voya High Yield | Old Westbury vs. Msift High Yield | Old Westbury vs. Strategic Advisers Income |
| Fidelity Managed vs. Barings High Yield | Fidelity Managed vs. Catalystsmh High Income | Fidelity Managed vs. Ab High Income | Fidelity Managed vs. Mesirow Financial High |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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