Correlation Between Origin Emerging and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Origin Emerging and Fidelity Puritan 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 Origin Emerging and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Emerging Markets and Fidelity Puritan Fund, you can compare the effects of market volatilities on Origin Emerging and Fidelity Puritan 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 Origin Emerging with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Emerging and Fidelity Puritan.
Diversification Opportunities for Origin Emerging and Fidelity Puritan
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Origin and Fidelity is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Origin Emerging Markets and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Origin Emerging 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 Origin Emerging Markets are associated (or correlated) with Fidelity Puritan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Puritan has no effect on the direction of Origin Emerging i.e., Origin Emerging and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Origin Emerging and Fidelity Puritan
Assuming the 90 days horizon Origin Emerging Markets is expected to generate 0.29 times more return on investment than Fidelity Puritan. However, Origin Emerging Markets is 3.41 times less risky than Fidelity Puritan. It trades about -0.17 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about -0.23 per unit of risk. If you would invest 1,052 in Origin Emerging Markets on October 12, 2024 and sell it today you would lose (7.00) from holding Origin Emerging Markets or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Origin Emerging Markets vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Origin Emerging Markets |
| Fidelity Puritan |
Origin Emerging and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Emerging and Fidelity Puritan
The main advantage of trading using opposite Origin Emerging and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Emerging position performs unexpectedly, Fidelity Puritan 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 Puritan will offset losses from the drop in Fidelity Puritan's long position.| Origin Emerging vs. Artisan Small Cap | Origin Emerging vs. T Rowe Price | Origin Emerging vs. Qs Growth Fund | Origin Emerging vs. The Hartford Growth |
| Fidelity Puritan vs. Catalystmillburn Hedge Strategy | Fidelity Puritan vs. Delaware Emerging Markets | Fidelity Puritan vs. Inverse Nasdaq 100 Strategy | Fidelity Puritan vs. Origin Emerging Markets |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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