Correlation Between Fidelity Total and Vident Core
Can any of the company-specific risk be diversified away by investing in both Fidelity Total and Vident Core 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 Total and Vident Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Total Bond and Vident Core Bond, you can compare the effects of market volatilities on Fidelity Total and Vident Core 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 Total with a short position of Vident Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Total and Vident Core.
Diversification Opportunities for Fidelity Total and Vident Core
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Vident is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Total Bond and Vident Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vident Core Bond and Fidelity Total 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 Total Bond are associated (or correlated) with Vident Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vident Core Bond has no effect on the direction of Fidelity Total i.e., Fidelity Total and Vident Core go up and down completely randomly.
Pair Corralation between Fidelity Total and Vident Core
Given the investment horizon of 90 days Fidelity Total is expected to generate 3.56 times less return on investment than Vident Core. But when comparing it to its historical volatility, Fidelity Total Bond is 1.32 times less risky than Vident Core. It trades about 0.0 of its potential returns per unit of risk. Vident Core Bond is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,400 in Vident Core Bond on September 11, 2025 and sell it today you would earn a total of 8.00 from holding Vident Core Bond or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Total Bond vs. Vident Core Bond
Performance |
| Timeline |
| Fidelity Total Bond |
| Vident Core Bond |
Fidelity Total and Vident Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Total and Vident Core
The main advantage of trading using opposite Fidelity Total and Vident Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Total position performs unexpectedly, Vident Core 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 Vident Core will offset losses from the drop in Vident Core's long position.| Fidelity Total vs. iShares iBoxx High | Fidelity Total vs. iShares MSCI Emerging | Fidelity Total vs. iShares Broad USD | Fidelity Total vs. Schwab Fundamental Large |
| Vident Core vs. Themes Infrastructure ETF | Vident Core vs. First Trust Exchange Traded | Vident Core vs. Unlimited HFEQ Equity | Vident Core vs. ProShares SP Kensho |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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