Correlation Between Fidelity Series and Gmo High
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Gmo High 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 Series and Gmo High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Government and Gmo High Yield, you can compare the effects of market volatilities on Fidelity Series and Gmo High 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 Series with a short position of Gmo High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Gmo High.
Diversification Opportunities for Fidelity Series and Gmo High
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Gmo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Government and Gmo High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo High Yield and Fidelity Series 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 Series Government are associated (or correlated) with Gmo High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo High Yield has no effect on the direction of Fidelity Series i.e., Fidelity Series and Gmo High go up and down completely randomly.
Pair Corralation between Fidelity Series and Gmo High
Assuming the 90 days horizon Fidelity Series Government is expected to generate 1.28 times more return on investment than Gmo High. However, Fidelity Series is 1.28 times more volatile than Gmo High Yield. It trades about 0.15 of its potential returns per unit of risk. Gmo High Yield is currently generating about 0.19 per unit of risk. If you would invest 910.00 in Fidelity Series Government on September 2, 2025 and sell it today you would earn a total of 19.00 from holding Fidelity Series Government or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Series Government vs. Gmo High Yield
Performance |
| Timeline |
| Fidelity Series Gove |
| Gmo High Yield |
Fidelity Series and Gmo High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Series and Gmo High
The main advantage of trading using opposite Fidelity Series and Gmo High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Gmo High 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 Gmo High will offset losses from the drop in Gmo High's long position.| Fidelity Series vs. Elfun Government Money | Fidelity Series vs. Jpmorgan Government Bond | Fidelity Series vs. Long Term Government Fund | Fidelity Series vs. Short Term Government Fund |
| Gmo High vs. Profunds Large Cap Growth | Gmo High vs. Qs Large Cap | Gmo High vs. T Rowe Price | Gmo High vs. Prudential Qma Large Cap |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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