Correlation Between Pace International and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Pace International 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 Pace International and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace International Emerging and Fidelity Series International, you can compare the effects of market volatilities on Pace International 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 Pace International with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace International and Fidelity Series.
Diversification Opportunities for Pace International and Fidelity Series
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pace and Fidelity is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Pace International Emerging and Fidelity Series International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Inte and Pace International 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 Pace International Emerging 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 Inte has no effect on the direction of Pace International i.e., Pace International and Fidelity Series go up and down completely randomly.
Pair Corralation between Pace International and Fidelity Series
Assuming the 90 days horizon Pace International is expected to generate 1.29 times less return on investment than Fidelity Series. In addition to that, Pace International is 1.04 times more volatile than Fidelity Series International. It trades about 0.05 of its total potential returns per unit of risk. Fidelity Series International is currently generating about 0.07 per unit of volatility. If you would invest 1,135 in Fidelity Series International on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Fidelity Series International or generate 14.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace International Emerging vs. Fidelity Series International
Performance |
| Timeline |
| Pace International |
| Fidelity Series Inte |
Pace International and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace International and Fidelity Series
The main advantage of trading using opposite Pace International and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace International 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.| Pace International vs. Prudential Jennison Financial | Pace International vs. Davis Financial Fund | Pace International vs. Financials Ultrasector Profund | Pace International vs. Mesirow Financial Small |
| Fidelity Series vs. Artisan Emerging Markets | Fidelity Series vs. Franklin Emerging Market | Fidelity Series vs. Pace International Emerging | Fidelity Series vs. Eagle Mlp Strategy |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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