Correlation Between Voya Large-cap and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Voya Large-cap and Fidelity Puritan 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 Voya Large-cap and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Large Cap Growth and Fidelity Puritan Fund, you can compare the effects of market volatilities on Voya Large-cap and Fidelity Puritan 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 Voya Large-cap with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Large-cap and Fidelity Puritan.
Diversification Opportunities for Voya Large-cap and Fidelity Puritan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between VOYA and Fidelity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Voya Large Cap Growth and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Voya Large-cap 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 Voya Large Cap Growth are associated (or correlated) with Fidelity Puritan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Puritan has no effect on the direction of Voya Large-cap i.e., Voya Large-cap and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Voya Large-cap and Fidelity Puritan
Assuming the 90 days horizon Voya Large Cap Growth is expected to generate 1.76 times more return on investment than Fidelity Puritan. However, Voya Large-cap is 1.76 times more volatile than Fidelity Puritan Fund. It trades about 0.12 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.14 per unit of risk. If you would invest 4,512 in Voya Large Cap Growth on August 27, 2024 and sell it today you would earn a total of 1,670 from holding Voya Large Cap Growth or generate 37.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Large Cap Growth vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Voya Large Cap |
| Fidelity Puritan |
Voya Large-cap and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Large-cap and Fidelity Puritan
The main advantage of trading using opposite Voya Large-cap and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Large-cap position performs unexpectedly, Fidelity Puritan 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 Puritan will offset losses from the drop in Fidelity Puritan's long position.| Voya Large-cap vs. Morningstar Defensive Bond | Voya Large-cap vs. California Bond Fund | Voya Large-cap vs. Dws Government Money | Voya Large-cap vs. Transamerica Intermediate Muni |
| Fidelity Puritan vs. Fidelity Balanced Fund | Fidelity Puritan vs. Fidelity Magellan Fund | Fidelity Puritan vs. Fidelity Growth Income | Fidelity Puritan vs. Fidelity Equity Income 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |