Correlation Between Fidelity Puritan and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Fidelity Sustainable 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 Puritan and Fidelity Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Puritan Fund and Fidelity Sustainable Target, you can compare the effects of market volatilities on Fidelity Puritan and Fidelity Sustainable 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 Puritan with a short position of Fidelity Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Fidelity Sustainable.
Diversification Opportunities for Fidelity Puritan and Fidelity Sustainable
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Fidelity Sustainable Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable and Fidelity Puritan 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 Puritan Fund are associated (or correlated) with Fidelity Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Fidelity Sustainable
Assuming the 90 days horizon Fidelity Puritan is expected to generate 1.64 times less return on investment than Fidelity Sustainable. But when comparing it to its historical volatility, Fidelity Puritan Fund is 1.21 times less risky than Fidelity Sustainable. It trades about 0.19 of its potential returns per unit of risk. Fidelity Sustainable Target is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,109 in Fidelity Sustainable Target on June 2, 2025 and sell it today you would earn a total of 37.00 from holding Fidelity Sustainable Target or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Fidelity Sustainable Target
Performance |
| Timeline |
| Fidelity Puritan |
| Fidelity Sustainable |
Fidelity Puritan and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Fidelity Sustainable
The main advantage of trading using opposite Fidelity Puritan and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Fidelity Sustainable 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 Fidelity Sustainable will offset losses from the drop in Fidelity Sustainable's long position.| Fidelity Puritan vs. Putnam Global Technology | Fidelity Puritan vs. Invesco Technology Fund | Fidelity Puritan vs. Pgim Jennison Technology | Fidelity Puritan vs. Goldman Sachs Technology |
| Fidelity Sustainable vs. Fidelity Freedom 2015 | Fidelity Sustainable vs. Fidelity Puritan Fund | Fidelity Sustainable vs. Fidelity Puritan Fund | Fidelity Sustainable vs. Fidelity Pennsylvania Municipal |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| AI Portfolio Prophet Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |