Correlation Between Strategic Asset and Fidelity Asset
Can any of the company-specific risk be diversified away by investing in both Strategic Asset and Fidelity Asset 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 Strategic Asset and Fidelity Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Asset Management and Fidelity Asset Manager, you can compare the effects of market volatilities on Strategic Asset and Fidelity Asset 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 Strategic Asset with a short position of Fidelity Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Asset and Fidelity Asset.
Diversification Opportunities for Strategic Asset and Fidelity Asset
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Strategic and Fidelity is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Asset Management and Fidelity Asset Manager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Asset Manager and Strategic Asset 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 Strategic Asset Management are associated (or correlated) with Fidelity Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Asset Manager has no effect on the direction of Strategic Asset i.e., Strategic Asset and Fidelity Asset go up and down completely randomly.
Pair Corralation between Strategic Asset and Fidelity Asset
Assuming the 90 days horizon Strategic Asset Management is expected to generate 1.17 times more return on investment than Fidelity Asset. However, Strategic Asset is 1.17 times more volatile than Fidelity Asset Manager. It trades about 0.08 of its potential returns per unit of risk. Fidelity Asset Manager is currently generating about 0.06 per unit of risk. If you would invest 1,063 in Strategic Asset Management on August 24, 2024 and sell it today you would earn a total of 154.00 from holding Strategic Asset Management or generate 14.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Asset Management vs. Fidelity Asset Manager
Performance |
| Timeline |
| Strategic Asset Mana |
| Fidelity Asset Manager |
Strategic Asset and Fidelity Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Asset and Fidelity Asset
The main advantage of trading using opposite Strategic Asset and Fidelity Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Asset position performs unexpectedly, Fidelity Asset 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 Asset will offset losses from the drop in Fidelity Asset's long position.| Strategic Asset vs. Fidelity Asset Manager | Strategic Asset vs. Fidelity Asset Manager | Strategic Asset vs. Fidelity Asset Manager | Strategic Asset vs. Fidelity Asset Manager |
| Fidelity Asset vs. Blackrock Financial Institutions | Fidelity Asset vs. Royce Global Financial | Fidelity Asset vs. John Hancock Financial | Fidelity Asset vs. 1919 Financial Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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