Correlation Between Fidelity Stock and Nuveen Preferred
Can any of the company-specific risk be diversified away by investing in both Fidelity Stock and Nuveen Preferred 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 Stock and Nuveen Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Stock Selector and Nuveen Preferred Securities, you can compare the effects of market volatilities on Fidelity Stock and Nuveen Preferred 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 Stock with a short position of Nuveen Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Stock and Nuveen Preferred.
Diversification Opportunities for Fidelity Stock and Nuveen Preferred
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Nuveen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Stock Selector and Nuveen Preferred Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Preferred Sec and Fidelity Stock 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 Stock Selector are associated (or correlated) with Nuveen Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Preferred Sec has no effect on the direction of Fidelity Stock i.e., Fidelity Stock and Nuveen Preferred go up and down completely randomly.
Pair Corralation between Fidelity Stock and Nuveen Preferred
Assuming the 90 days horizon Fidelity Stock Selector is expected to generate 5.69 times more return on investment than Nuveen Preferred. However, Fidelity Stock is 5.69 times more volatile than Nuveen Preferred Securities. It trades about 0.11 of its potential returns per unit of risk. Nuveen Preferred Securities is currently generating about 0.3 per unit of risk. If you would invest 3,900 in Fidelity Stock Selector on August 14, 2025 and sell it today you would earn a total of 274.00 from holding Fidelity Stock Selector or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Fidelity Stock Selector vs. Nuveen Preferred Securities
Performance |
| Timeline |
| Fidelity Stock Selector |
| Nuveen Preferred Sec |
Fidelity Stock and Nuveen Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Stock and Nuveen Preferred
The main advantage of trading using opposite Fidelity Stock and Nuveen Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Stock position performs unexpectedly, Nuveen Preferred 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 Nuveen Preferred will offset losses from the drop in Nuveen Preferred's long position.| Fidelity Stock vs. Fidelity International Small | Fidelity Stock vs. Fidelity New Millennium | Fidelity Stock vs. Fidelity Asset Manager | Fidelity Stock vs. Tiaa Cref Social Choice |
| Nuveen Preferred vs. Fidelity Strategic Dividend | Nuveen Preferred vs. T Rowe Price | Nuveen Preferred vs. Guggenheim Limited Duration | Nuveen Preferred vs. Janus Multi Sector Income |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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