Correlation Between Eafe Fund and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Eafe Fund and Fidelity International 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 Eafe Fund and Fidelity International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Eafe Fund and Fidelity International Growth, you can compare the effects of market volatilities on Eafe Fund and Fidelity International 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 Eafe Fund with a short position of Fidelity International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eafe Fund and Fidelity International.
Diversification Opportunities for Eafe Fund and Fidelity International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eafe and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Eafe Fund and Fidelity International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International and Eafe Fund 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 The Eafe Fund are associated (or correlated) with Fidelity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Eafe Fund i.e., Eafe Fund and Fidelity International go up and down completely randomly.
Pair Corralation between Eafe Fund and Fidelity International
Assuming the 90 days horizon The Eafe Fund is expected to under-perform the Fidelity International. In addition to that, Eafe Fund is 1.35 times more volatile than Fidelity International Growth. It trades about -0.26 of its total potential returns per unit of risk. Fidelity International Growth is currently generating about -0.3 per unit of volatility. If you would invest 2,073 in Fidelity International Growth on January 24, 2024 and sell it today you would lose (93.00) from holding Fidelity International Growth or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Eafe Fund vs. Fidelity International Growth
Performance |
| Timeline |
| Eafe Fund |
| Fidelity International |
Eafe Fund and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eafe Fund and Fidelity International
The main advantage of trading using opposite Eafe Fund and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eafe Fund position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| Eafe Fund vs. The Long Term | Eafe Fund vs. Baillie Gifford China | Eafe Fund vs. Baillie Gifford China | Eafe Fund vs. The Global Alpha |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |