Correlation Between Fidelity Small and Champlain Small
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Champlain Small 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 Small and Champlain Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Champlain Small, you can compare the effects of market volatilities on Fidelity Small and Champlain Small 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 Small with a short position of Champlain Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Champlain Small.
Diversification Opportunities for Fidelity Small and Champlain Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Champlain is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Champlain Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champlain Small and Fidelity Small 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 Small Cap are associated (or correlated) with Champlain Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champlain Small has no effect on the direction of Fidelity Small i.e., Fidelity Small and Champlain Small go up and down completely randomly.
Pair Corralation between Fidelity Small and Champlain Small
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 0.89 times more return on investment than Champlain Small. However, Fidelity Small Cap is 1.13 times less risky than Champlain Small. It trades about 0.22 of its potential returns per unit of risk. Champlain Small is currently generating about 0.12 per unit of risk. If you would invest 2,980 in Fidelity Small Cap on April 26, 2025 and sell it today you would earn a total of 420.00 from holding Fidelity Small Cap or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Champlain Small
Performance |
| Timeline |
| Fidelity Small Cap |
| Champlain Small |
Fidelity Small and Champlain Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Champlain Small
The main advantage of trading using opposite Fidelity Small and Champlain Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Champlain Small 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 Champlain Small will offset losses from the drop in Champlain Small's long position.| Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Small Cap |
| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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