Correlation Between Fidelity Sai and Fidelity Series

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai 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 Fidelity Sai and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Long Term and Fidelity Series Long Term, you can compare the effects of market volatilities on Fidelity Sai 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 Fidelity Sai with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Fidelity Series.

Diversification Opportunities for Fidelity Sai and Fidelity Series

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Fidelity and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY SAI LONG-TERM 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-term and Fidelity Sai 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 Fidelity Sai Long Term 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-term has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Fidelity Series go up and down completely randomly.

Pair Corralation between Fidelity Sai and Fidelity Series

Assuming the 90 days horizon Fidelity Sai Long Term is expected to under-perform the Fidelity Series. In addition to that, Fidelity Sai is 1.08 times more volatile than Fidelity Series Long Term. It trades about -0.06 of its total potential returns per unit of risk. Fidelity Series Long Term is currently generating about -0.07 per unit of volatility. If you would invest  809.00  in Fidelity Series Long Term on November 24, 2023 and sell it today you would lose (260.00) from holding Fidelity Series Long Term or give up 32.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.8%
ValuesDaily Returns

FIDELITY SAI LONG-TERM  vs.  FIDELITY SERIES LONG-TERM

 Performance 
       Timeline  
Fidelity Sai Long-term 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai Long Term are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Sai is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity Series Long-term 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series Long Term are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Sai and Fidelity Series Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Sai and Fidelity Series

The main advantage of trading using opposite Fidelity Sai and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai 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.
The idea behind Fidelity Sai Long Term and Fidelity Series Long Term pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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..

Other Complementary Tools

Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Bonds Directory
Find actively traded corporate debentures issued by US companies
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Insider Screener
Find insiders across different sectors to evaluate their impact on performance