Correlation Between Fidelity New and Guidestone Growth
Can any of the company-specific risk be diversified away by investing in both Fidelity New and Guidestone Growth 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 New and Guidestone Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity New Markets and Guidestone Growth Equity, you can compare the effects of market volatilities on Fidelity New and Guidestone Growth 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 New with a short position of Guidestone Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Guidestone Growth.
Diversification Opportunities for Fidelity New and Guidestone Growth
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Guidestone is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Guidestone Growth Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Growth Equity and Fidelity New 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 New Markets are associated (or correlated) with Guidestone Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Growth Equity has no effect on the direction of Fidelity New i.e., Fidelity New and Guidestone Growth go up and down completely randomly.
Pair Corralation between Fidelity New and Guidestone Growth
Assuming the 90 days horizon Fidelity New is expected to generate 1.76 times less return on investment than Guidestone Growth. But when comparing it to its historical volatility, Fidelity New Markets is 3.83 times less risky than Guidestone Growth. It trades about 0.32 of its potential returns per unit of risk. Guidestone Growth Equity is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,731 in Guidestone Growth Equity on June 4, 2025 and sell it today you would earn a total of 79.00 from holding Guidestone Growth Equity or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity New Markets vs. Guidestone Growth Equity
Performance |
| Timeline |
| Fidelity New Markets |
| Guidestone Growth Equity |
Fidelity New and Guidestone Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and Guidestone Growth
The main advantage of trading using opposite Fidelity New and Guidestone Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New position performs unexpectedly, Guidestone Growth 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 Guidestone Growth will offset losses from the drop in Guidestone Growth's long position.| Fidelity New vs. Fidelity Advisor Energy | Fidelity New vs. Dreyfus Natural Resources | Fidelity New vs. Jennison Natural Resources | Fidelity New vs. Thrivent Natural Resources |
| Guidestone Growth vs. Sprott Gold Equity | Guidestone Growth vs. Oppenheimer Gold Special | Guidestone Growth vs. Goldman Sachs Clean | Guidestone Growth vs. Gold And Precious |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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