Correlation Between Ab High and Fidelity American

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

Diversification Opportunities for Ab High and Fidelity American

0.91
  Correlation Coefficient

Almost no diversification

The 3 months correlation between AGDAX and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ab High Income and Fidelity American High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity American High and Ab High 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 Ab High Income are associated (or correlated) with Fidelity American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity American High has no effect on the direction of Ab High i.e., Ab High and Fidelity American go up and down completely randomly.

Pair Corralation between Ab High and Fidelity American

Assuming the 90 days horizon Ab High is expected to generate 1.27 times less return on investment than Fidelity American. But when comparing it to its historical volatility, Ab High Income is 1.05 times less risky than Fidelity American. It trades about 0.15 of its potential returns per unit of risk. Fidelity American High is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  569.00  in Fidelity American High on October 7, 2025 and sell it today you would earn a total of  130.00  from holding Fidelity American High or generate 22.85% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.8%
ValuesDaily Returns

Ab High Income  vs.  Fidelity American High

 Performance 
       Timeline  
Ab High Income 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ab High Income are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ab High is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity American High 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity American High are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Fidelity American is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Ab High and Fidelity American Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ab High and Fidelity American

The main advantage of trading using opposite Ab High and Fidelity American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab High position performs unexpectedly, Fidelity American 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 American will offset losses from the drop in Fidelity American's long position.
The idea behind Ab High Income and Fidelity American High 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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