Correlation Between Fidelity Large and Profunds Large
Can any of the company-specific risk be diversified away by investing in both Fidelity Large and Profunds Large 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 Profunds Large 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 Profunds Large Cap Growth, you can compare the effects of market volatilities on Fidelity Large and Profunds Large 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 Profunds Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Large and Profunds Large.
Diversification Opportunities for Fidelity Large and Profunds Large
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Profunds is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Large Cap and Profunds Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profunds Large Cap 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 Profunds Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profunds Large Cap has no effect on the direction of Fidelity Large i.e., Fidelity Large and Profunds Large go up and down completely randomly.
Pair Corralation between Fidelity Large and Profunds Large
Assuming the 90 days horizon Fidelity Large Cap is expected to generate 0.79 times more return on investment than Profunds Large. However, Fidelity Large Cap is 1.26 times less risky than Profunds Large. It trades about 0.3 of its potential returns per unit of risk. Profunds Large Cap Growth is currently generating about 0.23 per unit of risk. If you would invest 1,572 in Fidelity Large Cap on May 28, 2025 and sell it today you would earn a total of 179.00 from holding Fidelity Large Cap or generate 11.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Large Cap vs. Profunds Large Cap Growth
Performance |
| Timeline |
| Fidelity Large Cap |
| Profunds Large Cap |
Fidelity Large and Profunds Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Large and Profunds Large
The main advantage of trading using opposite Fidelity Large and Profunds Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Large position performs unexpectedly, Profunds Large 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 Profunds Large will offset losses from the drop in Profunds Large's long position.| Fidelity Large vs. Pgim Conservative Retirement | Fidelity Large vs. Franklin Lifesmart Retirement | Fidelity Large vs. Tiaa Cref Lifestyle Moderate | Fidelity Large vs. Trowe Price Retirement |
| Profunds Large vs. The Gabelli Healthcare | Profunds Large vs. Lord Abbett Health | Profunds Large vs. Deutsche Health And | Profunds Large vs. Alger Health Sciences |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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