Correlation Between Americafirst Large and Fidelity Freedom
Can any of the company-specific risk be diversified away by investing in both Americafirst Large and Fidelity Freedom 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 Americafirst Large and Fidelity Freedom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Americafirst Large Cap and Fidelity Freedom Blend, you can compare the effects of market volatilities on Americafirst Large and Fidelity Freedom 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 Americafirst Large with a short position of Fidelity Freedom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Large and Fidelity Freedom.
Diversification Opportunities for Americafirst Large and Fidelity Freedom
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Americafirst and Fidelity is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Large Cap and Fidelity Freedom Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Freedom Blend and Americafirst Large 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 Americafirst Large Cap are associated (or correlated) with Fidelity Freedom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Freedom Blend has no effect on the direction of Americafirst Large i.e., Americafirst Large and Fidelity Freedom go up and down completely randomly.
Pair Corralation between Americafirst Large and Fidelity Freedom
Assuming the 90 days horizon Americafirst Large Cap is expected to generate 2.8 times more return on investment than Fidelity Freedom. However, Americafirst Large is 2.8 times more volatile than Fidelity Freedom Blend. It trades about 0.09 of its potential returns per unit of risk. Fidelity Freedom Blend is currently generating about 0.1 per unit of risk. If you would invest 1,147 in Americafirst Large Cap on October 28, 2024 and sell it today you would earn a total of 280.00 from holding Americafirst Large Cap or generate 24.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Americafirst Large Cap vs. Fidelity Freedom Blend
Performance |
| Timeline |
| Americafirst Large Cap |
| Fidelity Freedom Blend |
Americafirst Large and Fidelity Freedom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Americafirst Large and Fidelity Freedom
The main advantage of trading using opposite Americafirst Large and Fidelity Freedom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Large position performs unexpectedly, Fidelity Freedom 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 Freedom will offset losses from the drop in Fidelity Freedom's long position.| Americafirst Large vs. Msift High Yield | Americafirst Large vs. Artisan High Income | Americafirst Large vs. Ab High Income | Americafirst Large vs. Prudential High Yield |
| Fidelity Freedom vs. Fidelity Income Replacement | Fidelity Freedom vs. Fidelity Income Replacement | Fidelity Freedom vs. Fidelity Income Replacement | Fidelity Freedom vs. Fidelity Income Replacement |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |