Correlation Between Cref Inflation-linked and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked 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 Cref Inflation-linked and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Fidelity Managed Retirement, you can compare the effects of market volatilities on Cref Inflation-linked 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 Cref Inflation-linked with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Fidelity Managed.
Diversification Opportunities for Cref Inflation-linked and Fidelity Managed
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cref and Fidelity is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond 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 Cref Inflation-linked 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 Cref Inflation Linked Bond 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 Cref Inflation-linked i.e., Cref Inflation-linked and Fidelity Managed go up and down completely randomly.
Pair Corralation between Cref Inflation-linked and Fidelity Managed
Assuming the 90 days trading horizon Cref Inflation-linked is expected to generate 1.19 times less return on investment than Fidelity Managed. But when comparing it to its historical volatility, Cref Inflation Linked Bond is 1.69 times less risky than Fidelity Managed. It trades about 0.48 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 5,514 in Fidelity Managed Retirement on November 8, 2024 and sell it today you would earn a total of 112.00 from holding Fidelity Managed Retirement or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Cref Inflation Linked |
| Fidelity Managed Ret |
Cref Inflation-linked and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation-linked and Fidelity Managed
The main advantage of trading using opposite Cref Inflation-linked and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked 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.| Cref Inflation-linked vs. Us Government Securities | Cref Inflation-linked vs. Virtus Seix Government | Cref Inflation-linked vs. Schwab Government Money | Cref Inflation-linked vs. Us Government Securities |
| Fidelity Managed vs. Eaton Vance Worldwide | Fidelity Managed vs. Health Care Ultrasector | Fidelity Managed vs. Putnam Global Health | Fidelity Managed vs. Blackrock Health Sciences |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |