Correlation Between Fidelity New and Us Government
Can any of the company-specific risk be diversified away by investing in both Fidelity New and Us Government 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 Us Government 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 Us Government Securities, you can compare the effects of market volatilities on Fidelity New and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity New and Us Government.
Diversification Opportunities for Fidelity New and Us Government
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and RGVCX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity New Markets and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Fidelity New i.e., Fidelity New and Us Government go up and down completely randomly.
Pair Corralation between Fidelity New and Us Government
Assuming the 90 days horizon Fidelity New Markets is expected to generate 0.69 times more return on investment than Us Government. However, Fidelity New Markets is 1.45 times less risky than Us Government. It trades about 0.43 of its potential returns per unit of risk. Us Government Securities is currently generating about 0.14 per unit of risk. If you would invest 1,256 in Fidelity New Markets on May 28, 2025 and sell it today you would earn a total of 73.00 from holding Fidelity New Markets or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Fidelity New Markets vs. Us Government Securities
Performance |
| Timeline |
| Fidelity New Markets |
| Us Government Securities |
Fidelity New and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity New and Us Government
The main advantage of trading using opposite Fidelity New and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity New position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's long position.| Fidelity New vs. Fidelity Freedom 2015 | Fidelity New vs. Fidelity Puritan Fund | Fidelity New vs. Fidelity Puritan Fund | Fidelity New vs. Fidelity Pennsylvania Municipal |
| Us Government vs. Inflation Protected Bond Fund | Us Government vs. Tiaa Cref Inflation Link | Us Government vs. Great West Inflation Protected Securities | Us Government vs. Ab Bond 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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