Correlation Between Enhanced Fixed and Fidelity Puritan
Can any of the company-specific risk be diversified away by investing in both Enhanced Fixed 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 Enhanced Fixed and Fidelity Puritan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enhanced Fixed Income and Fidelity Puritan Fund, you can compare the effects of market volatilities on Enhanced Fixed 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 Enhanced Fixed with a short position of Fidelity Puritan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enhanced Fixed and Fidelity Puritan.
Diversification Opportunities for Enhanced Fixed and Fidelity Puritan
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Enhanced and Fidelity is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Enhanced Fixed Income and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Enhanced Fixed 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 Enhanced Fixed Income 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 Enhanced Fixed i.e., Enhanced Fixed and Fidelity Puritan go up and down completely randomly.
Pair Corralation between Enhanced Fixed and Fidelity Puritan
Assuming the 90 days horizon Enhanced Fixed is expected to generate 2.04 times less return on investment than Fidelity Puritan. But when comparing it to its historical volatility, Enhanced Fixed Income is 1.89 times less risky than Fidelity Puritan. It trades about 0.27 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 2,447 in Fidelity Puritan Fund on May 30, 2025 and sell it today you would earn a total of 197.00 from holding Fidelity Puritan Fund or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Enhanced Fixed Income vs. Fidelity Puritan Fund
Performance |
| Timeline |
| Enhanced Fixed Income |
| Fidelity Puritan |
Enhanced Fixed and Fidelity Puritan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enhanced Fixed and Fidelity Puritan
The main advantage of trading using opposite Enhanced Fixed and Fidelity Puritan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enhanced Fixed 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.| Enhanced Fixed vs. Angel Oak Multi Strategy | Enhanced Fixed vs. Rbc Bluebay Emerging | Enhanced Fixed vs. Pace International Emerging | Enhanced Fixed vs. Western Assets Emerging |
| Fidelity Puritan vs. Putnam Global Financials | Fidelity Puritan vs. Goldman Sachs Financial | Fidelity Puritan vs. Blackrock Financial Institutions | Fidelity Puritan vs. Financial Industries 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 CEOs Directory module to screen CEOs from public companies around the world.
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