Correlation Between Fidelity Overseas and Fs Multi-strategy
Can any of the company-specific risk be diversified away by investing in both Fidelity Overseas and Fs Multi-strategy 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 Overseas and Fs Multi-strategy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Overseas Fund and Fs Multi Strategy Alt, you can compare the effects of market volatilities on Fidelity Overseas and Fs Multi-strategy 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 Overseas with a short position of Fs Multi-strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Overseas and Fs Multi-strategy.
Diversification Opportunities for Fidelity Overseas and Fs Multi-strategy
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and FSMSX is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Overseas Fund and Fs Multi Strategy Alt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fs Multi Strategy and Fidelity Overseas 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 Overseas Fund are associated (or correlated) with Fs Multi-strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fs Multi Strategy has no effect on the direction of Fidelity Overseas i.e., Fidelity Overseas and Fs Multi-strategy go up and down completely randomly.
Pair Corralation between Fidelity Overseas and Fs Multi-strategy
Assuming the 90 days horizon Fidelity Overseas Fund is expected to generate 5.29 times more return on investment than Fs Multi-strategy. However, Fidelity Overseas is 5.29 times more volatile than Fs Multi Strategy Alt. It trades about 0.07 of its potential returns per unit of risk. Fs Multi Strategy Alt is currently generating about 0.08 per unit of risk. If you would invest 5,862 in Fidelity Overseas Fund on April 26, 2025 and sell it today you would earn a total of 1,698 from holding Fidelity Overseas Fund or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Overseas Fund vs. Fs Multi Strategy Alt
Performance |
| Timeline |
| Fidelity Overseas |
| Fs Multi Strategy |
Fidelity Overseas and Fs Multi-strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Overseas and Fs Multi-strategy
The main advantage of trading using opposite Fidelity Overseas and Fs Multi-strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Overseas position performs unexpectedly, Fs Multi-strategy 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 Fs Multi-strategy will offset losses from the drop in Fs Multi-strategy's long position.| Fidelity Overseas vs. Fidelity Equity Income Fund | Fidelity Overseas vs. Fidelity Europe Fund | Fidelity Overseas vs. Fidelity Pacific Basin | Fidelity Overseas vs. Fidelity International Capital |
| Fs Multi-strategy vs. Prudential Health Sciences | Fs Multi-strategy vs. Health Care Ultrasector | Fs Multi-strategy vs. Schwab Health Care | Fs Multi-strategy vs. Vanguard Health Care |
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 Stocks Directory module to find actively traded stocks across global markets.
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