Correlation Between Fidelity Managed and Clifford Capital

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Can any of the company-specific risk be diversified away by investing in both Fidelity Managed and Clifford Capital 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 Managed and Clifford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Managed Retirement and Clifford Capital Partners, you can compare the effects of market volatilities on Fidelity Managed and Clifford Capital 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 Managed with a short position of Clifford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Managed and Clifford Capital.

Diversification Opportunities for Fidelity Managed and Clifford Capital

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between Fidelity and Clifford is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Managed Retirement and Clifford Capital Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clifford Capital Partners and Fidelity Managed 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 Managed Retirement are associated (or correlated) with Clifford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clifford Capital Partners has no effect on the direction of Fidelity Managed i.e., Fidelity Managed and Clifford Capital go up and down completely randomly.

Pair Corralation between Fidelity Managed and Clifford Capital

Assuming the 90 days horizon Fidelity Managed is expected to generate 1.11 times less return on investment than Clifford Capital. But when comparing it to its historical volatility, Fidelity Managed Retirement is 3.11 times less risky than Clifford Capital. It trades about 0.2 of its potential returns per unit of risk. Clifford Capital Partners is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  2,202  in Clifford Capital Partners on September 1, 2025 and sell it today you would earn a total of  83.00  from holding Clifford Capital Partners or generate 3.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fidelity Managed Retirement  vs.  Clifford Capital Partners

 Performance 
       Timeline  
Fidelity Managed Ret 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Managed Retirement are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Fidelity Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Clifford Capital Partners 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Clifford Capital Partners are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Clifford Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Managed and Clifford Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Managed and Clifford Capital

The main advantage of trading using opposite Fidelity Managed and Clifford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Managed position performs unexpectedly, Clifford Capital 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 Clifford Capital will offset losses from the drop in Clifford Capital's long position.
The idea behind Fidelity Managed Retirement and Clifford Capital Partners pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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