Correlation Between Ab Small and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Ab Small 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 Ab Small and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Small Cap and Fidelity Puritan Fund, you can compare the effects of market volatilities on Ab Small 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 Ab Small with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Small and Fidelity Puritan.
Diversification Opportunities for Ab Small and Fidelity Puritan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between QUAZX and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ab Small Cap and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Ab Small 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 Ab Small Cap 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 Ab Small i.e., Ab Small and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Ab Small and Fidelity Puritan
Assuming the 90 days horizon Ab Small Cap is expected to generate 1.72 times more return on investment than Fidelity Puritan. However, Ab Small is 1.72 times more volatile than Fidelity Puritan Fund. It trades about 0.08 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.07 per unit of risk. If you would invest 5,784 in Ab Small Cap on November 5, 2024 and sell it today you would earn a total of 1,973 from holding Ab Small Cap or generate 34.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Small Cap vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Ab Small Cap |
| Fidelity Puritan |
Ab Small and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Small and Fidelity Puritan
The main advantage of trading using opposite Ab Small and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Small 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.| Ab Small vs. L Abbett Growth | Ab Small vs. Growth Allocation Fund | Ab Small vs. T Rowe Price | Ab Small vs. Transamerica Capital Growth |
| Fidelity Puritan vs. Lord Abbett Government | Fidelity Puritan vs. Virtus Seix Government | Fidelity Puritan vs. Us Government Securities | Fidelity Puritan vs. Voya Government Money |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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