Correlation Between Fidelity Large and Select Fund
Can any of the company-specific risk be diversified away by investing in both Fidelity Large and Select Fund 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 Large and Select Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Large Cap and Select Fund C, you can compare the effects of market volatilities on Fidelity Large and Select Fund 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 Large with a short position of Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Large and Select Fund.
Diversification Opportunities for Fidelity Large and Select Fund
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Select is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Large Cap and Select Fund C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund C and Fidelity Large 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 Large Cap are associated (or correlated) with Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund C has no effect on the direction of Fidelity Large i.e., Fidelity Large and Select Fund go up and down completely randomly.
Pair Corralation between Fidelity Large and Select Fund
Assuming the 90 days horizon Fidelity Large Cap is expected to generate 0.73 times more return on investment than Select Fund. However, Fidelity Large Cap is 1.36 times less risky than Select Fund. It trades about 0.31 of its potential returns per unit of risk. Select Fund C is currently generating about 0.22 per unit of risk. If you would invest 1,550 in Fidelity Large Cap on May 23, 2025 and sell it today you would earn a total of 183.00 from holding Fidelity Large Cap or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Large Cap vs. Select Fund C
Performance |
| Timeline |
| Fidelity Large Cap |
| Select Fund C |
Fidelity Large and Select Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Large and Select Fund
The main advantage of trading using opposite Fidelity Large and Select Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Large position performs unexpectedly, Select Fund 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 Select Fund will offset losses from the drop in Select Fund's long position.| Fidelity Large vs. Columbia Convertible Securities | Fidelity Large vs. Absolute Convertible Arbitrage | Fidelity Large vs. Allianzgi Convertible Income | Fidelity Large vs. Calamos Dynamic Convertible |
| Select Fund vs. Collegeadvantage 529 Savings | Select Fund vs. Ab Bond Inflation | Select Fund vs. Short Duration Inflation | Select Fund vs. The Hartford Inflation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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