Correlation Between Saat Moderate and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Fidelity Managed Retirement, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Fidelity Managed.
Diversification Opportunities for Saat Moderate and Fidelity Managed
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Saat and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy 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 Saat Moderate 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 Saat Moderate Strategy 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 Saat Moderate i.e., Saat Moderate and Fidelity Managed go up and down completely randomly.
Pair Corralation between Saat Moderate and Fidelity Managed
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.77 times more return on investment than Fidelity Managed. However, Saat Moderate Strategy is 1.3 times less risky than Fidelity Managed. It trades about 0.37 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.23 per unit of risk. If you would invest 1,170 in Saat Moderate Strategy on September 2, 2024 and sell it today you would earn a total of 21.00 from holding Saat Moderate Strategy or generate 1.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Saat Moderate Strategy |
| Fidelity Managed Ret |
Saat Moderate and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Fidelity Managed
The main advantage of trading using opposite Saat Moderate and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. Rbb Fund | Saat Moderate vs. Western Asset Municipal | Saat Moderate vs. T Rowe Price | Saat Moderate vs. Aam Select Income |
| Fidelity Managed vs. Transamerica Emerging Markets | Fidelity Managed vs. Franklin Emerging Market | Fidelity Managed vs. Investec Emerging Markets | Fidelity Managed vs. Origin Emerging Markets |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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