Correlation Between Stringer Growth and Fidelity New
Can any of the company-specific risk be diversified away by investing in both Stringer Growth and Fidelity New 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 Stringer Growth and Fidelity New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stringer Growth Fund and Fidelity New Millennium, you can compare the effects of market volatilities on Stringer Growth and Fidelity New 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 Stringer Growth with a short position of Fidelity New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stringer Growth and Fidelity New.
Diversification Opportunities for Stringer Growth and Fidelity New
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stringer and Fidelity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Stringer Growth Fund and Fidelity New Millennium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity New Millennium and Stringer Growth 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 Stringer Growth Fund are associated (or correlated) with Fidelity New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity New Millennium has no effect on the direction of Stringer Growth i.e., Stringer Growth and Fidelity New go up and down completely randomly.
Pair Corralation between Stringer Growth and Fidelity New
Assuming the 90 days horizon Stringer Growth is expected to generate 3.71 times less return on investment than Fidelity New. But when comparing it to its historical volatility, Stringer Growth Fund is 1.6 times less risky than Fidelity New. It trades about 0.08 of its potential returns per unit of risk. Fidelity New Millennium is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,050 in Fidelity New Millennium on August 27, 2024 and sell it today you would earn a total of 196.00 from holding Fidelity New Millennium or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stringer Growth Fund vs. Fidelity New Millennium
Performance |
| Timeline |
| Stringer Growth |
| Fidelity New Millennium |
Stringer Growth and Fidelity New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stringer Growth and Fidelity New
The main advantage of trading using opposite Stringer Growth and Fidelity New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stringer Growth position performs unexpectedly, Fidelity New 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 New will offset losses from the drop in Fidelity New's long position.| Stringer Growth vs. Stringer Growth Fund | Stringer Growth vs. Fidelity Equity Income Fund | Stringer Growth vs. Salient Mlp Energy | Stringer Growth vs. Fidelity New Millennium |
| Fidelity New vs. Fidelity Focused Stock | Fidelity New vs. Fidelity Large Cap | Fidelity New vs. Computers Portfolio Puters | Fidelity New vs. Fidelity Trend 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |