Correlation Between Municipal Bond and Fidelity Flex
Can any of the company-specific risk be diversified away by investing in both Municipal Bond and Fidelity Flex 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 Municipal Bond and Fidelity Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Municipal Bond Fund and Fidelity Flex Small, you can compare the effects of market volatilities on Municipal Bond and Fidelity Flex 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 Municipal Bond with a short position of Fidelity Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Municipal Bond and Fidelity Flex.
Diversification Opportunities for Municipal Bond and Fidelity Flex
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Municipal and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Municipal Bond Fund and Fidelity Flex Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Flex Small and Municipal Bond 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 Municipal Bond Fund are associated (or correlated) with Fidelity Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Flex Small has no effect on the direction of Municipal Bond i.e., Municipal Bond and Fidelity Flex go up and down completely randomly.
Pair Corralation between Municipal Bond and Fidelity Flex
If you would invest 1,535 in Fidelity Flex Small on September 12, 2024 and sell it today you would earn a total of 188.00 from holding Fidelity Flex Small or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Municipal Bond Fund vs. Fidelity Flex Small
Performance |
| Timeline |
| Municipal Bond |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Fidelity Flex Small |
Municipal Bond and Fidelity Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Municipal Bond and Fidelity Flex
The main advantage of trading using opposite Municipal Bond and Fidelity Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Municipal Bond position performs unexpectedly, Fidelity Flex 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 Flex will offset losses from the drop in Fidelity Flex's long position.| Municipal Bond vs. Ppm High Yield | Municipal Bond vs. Ab High Income | Municipal Bond vs. Fa 529 Aggressive | Municipal Bond vs. Artisan High Income |
| Fidelity Flex vs. Fidelity Flex Mid | Fidelity Flex vs. Fidelity Flex International | Fidelity Flex vs. Fidelity Flex 500 | Fidelity Flex vs. Fidelity Flex Municipal |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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