Correlation Between Simt Multi-asset and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Simt Multi-asset 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 Simt Multi-asset and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simt Multi Asset Inflation and Fidelity Managed Retirement, you can compare the effects of market volatilities on Simt Multi-asset 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 Simt Multi-asset with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simt Multi-asset and Fidelity Managed.
Diversification Opportunities for Simt Multi-asset and Fidelity Managed
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Simt and Fidelity is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Simt Multi Asset Inflation 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 Simt Multi-asset 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 Simt Multi Asset Inflation 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 Simt Multi-asset i.e., Simt Multi-asset and Fidelity Managed go up and down completely randomly.
Pair Corralation between Simt Multi-asset and Fidelity Managed
Assuming the 90 days horizon Simt Multi Asset Inflation is expected to generate 0.83 times more return on investment than Fidelity Managed. However, Simt Multi Asset Inflation is 1.2 times less risky than Fidelity Managed. It trades about 0.12 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.08 per unit of risk. If you would invest 746.00 in Simt Multi Asset Inflation on December 2, 2024 and sell it today you would earn a total of 52.00 from holding Simt Multi Asset Inflation or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simt Multi Asset Inflation vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Simt Multi Asset |
| Fidelity Managed Ret |
Simt Multi-asset and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simt Multi-asset and Fidelity Managed
The main advantage of trading using opposite Simt Multi-asset and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Multi-asset 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.| Simt Multi-asset vs. T Rowe Price | Simt Multi-asset vs. T Rowe Price | Simt Multi-asset vs. T Rowe Price | Simt Multi-asset vs. Transamerica Financial Life |
| Fidelity Managed vs. Financials Ultrasector Profund | Fidelity Managed vs. Prudential Financial Services | Fidelity Managed vs. Goldman Sachs Financial | Fidelity Managed vs. Financial Industries Fund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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