Correlation Between Fidelity Puritan and Seafarer Overseas
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Seafarer Overseas 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 Seafarer Overseas 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 Seafarer Overseas Growth, you can compare the effects of market volatilities on Fidelity Puritan and Seafarer Overseas 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 Seafarer Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Seafarer Overseas.
Diversification Opportunities for Fidelity Puritan and Seafarer Overseas
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Seafarer is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Seafarer Overseas Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafarer Overseas Growth 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 Seafarer Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafarer Overseas Growth has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Seafarer Overseas go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Seafarer Overseas
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.92 times more return on investment than Seafarer Overseas. However, Fidelity Puritan Fund is 1.09 times less risky than Seafarer Overseas. It trades about 0.24 of its potential returns per unit of risk. Seafarer Overseas Growth is currently generating about 0.14 per unit of risk. If you would invest 2,419 in Fidelity Puritan Fund on August 31, 2025 and sell it today you would earn a total of 224.00 from holding Fidelity Puritan Fund or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Seafarer Overseas Growth
Performance |
| Timeline |
| Fidelity Puritan |
| Seafarer Overseas Growth |
Fidelity Puritan and Seafarer Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Seafarer Overseas
The main advantage of trading using opposite Fidelity Puritan and Seafarer Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Seafarer Overseas 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 Seafarer Overseas will offset losses from the drop in Seafarer Overseas' long position.| Fidelity Puritan vs. Fidelity New Markets | Fidelity Puritan vs. Fidelity New Markets | Fidelity Puritan vs. Fidelity Advisor Sustainable | Fidelity Puritan vs. Fidelity New Markets |
| Seafarer Overseas vs. Redwood Real Estate | Seafarer Overseas vs. Pender Real Estate | Seafarer Overseas vs. Fidelity Real Estate | Seafarer Overseas vs. Franklin Real Estate |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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