Correlation Between Nasdaq-100 Fund and Fidelity Growth
Can any of the company-specific risk be diversified away by investing in both Nasdaq-100 Fund and Fidelity Growth 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 Nasdaq-100 Fund and Fidelity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Fidelity Growth Discovery, you can compare the effects of market volatilities on Nasdaq-100 Fund and Fidelity Growth 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 Nasdaq-100 Fund with a short position of Fidelity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq-100 Fund and Fidelity Growth.
Diversification Opportunities for Nasdaq-100 Fund and Fidelity Growth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nasdaq-100 and Fidelity is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Fidelity Growth Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Discovery and Nasdaq-100 Fund 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 Nasdaq 100 Fund Class are associated (or correlated) with Fidelity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Growth Discovery has no effect on the direction of Nasdaq-100 Fund i.e., Nasdaq-100 Fund and Fidelity Growth go up and down completely randomly.
Pair Corralation between Nasdaq-100 Fund and Fidelity Growth
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to generate 1.14 times more return on investment than Fidelity Growth. However, Nasdaq-100 Fund is 1.14 times more volatile than Fidelity Growth Discovery. It trades about 0.09 of its potential returns per unit of risk. Fidelity Growth Discovery is currently generating about 0.09 per unit of risk. If you would invest 4,691 in Nasdaq 100 Fund Class on September 5, 2024 and sell it today you would earn a total of 3,185 from holding Nasdaq 100 Fund Class or generate 67.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Fidelity Growth Discovery
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Fidelity Growth Discovery |
Nasdaq-100 Fund and Fidelity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq-100 Fund and Fidelity Growth
The main advantage of trading using opposite Nasdaq-100 Fund and Fidelity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq-100 Fund position performs unexpectedly, Fidelity Growth 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 Growth will offset losses from the drop in Fidelity Growth's long position.| Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Fund Class | Nasdaq-100 Fund vs. Nasdaq 100 Profund Nasdaq 100 | Nasdaq-100 Fund vs. Select Fund R |
| Fidelity Growth vs. Fidelity Leveraged Pany | Fidelity Growth vs. Fidelity Dividend Growth | Fidelity Growth vs. Fidelity Value Fund | Fidelity Growth vs. Fidelity Blue Chip |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |