Correlation Between Fidelity Puritan and Fidelity Short-term
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Fidelity Short-term 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 Short-term 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 Short Term Treasury, you can compare the effects of market volatilities on Fidelity Puritan and Fidelity Short-term 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 Short-term. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Fidelity Short-term.
Diversification Opportunities for Fidelity Puritan and Fidelity Short-term
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Fidelity Short Term Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Short Term 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 Short-term. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Short Term has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Fidelity Short-term go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Fidelity Short-term
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 5.28 times more return on investment than Fidelity Short-term. However, Fidelity Puritan is 5.28 times more volatile than Fidelity Short Term Treasury. It trades about 0.21 of its potential returns per unit of risk. Fidelity Short Term Treasury is currently generating about 0.11 per unit of risk. If you would invest 2,450 in Fidelity Puritan Fund on September 5, 2025 and sell it today you would earn a total of 196.00 from holding Fidelity Puritan Fund or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Fidelity Short Term Treasury
Performance |
| Timeline |
| Fidelity Puritan |
| Fidelity Short Term |
Fidelity Puritan and Fidelity Short-term Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Fidelity Short-term
The main advantage of trading using opposite Fidelity Puritan and Fidelity Short-term positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Fidelity Short-term 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 Short-term will offset losses from the drop in Fidelity Short-term's long position.| Fidelity Puritan vs. Needham Aggressive Growth | Fidelity Puritan vs. Eagle Growth Income | Fidelity Puritan vs. Qs Defensive Growth | Fidelity Puritan vs. Qs Moderate Growth |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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