Correlation Between Vanguard Extended and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Vanguard Extended and Fidelity Series 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 Vanguard Extended and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Extended Duration and Fidelity Series Long Term, you can compare the effects of market volatilities on Vanguard Extended and Fidelity Series 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 Vanguard Extended with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Extended and Fidelity Series.
Diversification Opportunities for Vanguard Extended and Fidelity Series
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Vanguard and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Extended Duration and Fidelity Series Long Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Long and Vanguard Extended 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 Vanguard Extended Duration are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Long has no effect on the direction of Vanguard Extended i.e., Vanguard Extended and Fidelity Series go up and down completely randomly.
Pair Corralation between Vanguard Extended and Fidelity Series
Assuming the 90 days horizon Vanguard Extended Duration is expected to generate 1.67 times more return on investment than Fidelity Series. However, Vanguard Extended is 1.67 times more volatile than Fidelity Series Long Term. It trades about 0.09 of its potential returns per unit of risk. Fidelity Series Long Term is currently generating about 0.09 per unit of risk. If you would invest 2,201 in Vanguard Extended Duration on September 3, 2024 and sell it today you would earn a total of 56.00 from holding Vanguard Extended Duration or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanguard Extended Duration vs. Fidelity Series Long Term
Performance |
| Timeline |
| Vanguard Extended |
| Fidelity Series Long |
Vanguard Extended and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard Extended and Fidelity Series
The main advantage of trading using opposite Vanguard Extended and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Extended position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.| Vanguard Extended vs. Fidelity Series Long Term | Vanguard Extended vs. Vanguard Long Term Government | Vanguard Extended vs. Us Treasury Long Term | Vanguard Extended vs. Us Treasury Long Term |
| Fidelity Series vs. Ultrasmall Cap Profund Ultrasmall Cap | Fidelity Series vs. Ab Discovery Value | Fidelity Series vs. Amg River Road | Fidelity Series vs. Royce Opportunity 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| 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 | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |