Correlation Between Fidelity Sai and Federated Government
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Federated Government 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 Sai and Federated Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Sai Convertible and Federated Government Ultrashort, you can compare the effects of market volatilities on Fidelity Sai and Federated Government 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 Sai with a short position of Federated Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Federated Government.
Diversification Opportunities for Fidelity Sai and Federated Government
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Federated is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Federated Government Ultrashor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Government and Fidelity Sai 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 Sai Convertible are associated (or correlated) with Federated Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Government has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Federated Government go up and down completely randomly.
Pair Corralation between Fidelity Sai and Federated Government
Assuming the 90 days horizon Fidelity Sai Convertible is expected to generate 1.2 times more return on investment than Federated Government. However, Fidelity Sai is 1.2 times more volatile than Federated Government Ultrashort. It trades about 0.35 of its potential returns per unit of risk. Federated Government Ultrashort is currently generating about 0.23 per unit of risk. If you would invest 1,092 in Fidelity Sai Convertible on June 10, 2025 and sell it today you would earn a total of 23.00 from holding Fidelity Sai Convertible or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Federated Government Ultrashor
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Federated Government |
Fidelity Sai and Federated Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Federated Government
The main advantage of trading using opposite Fidelity Sai and Federated Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Federated Government 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 Federated Government will offset losses from the drop in Federated Government's long position.| Fidelity Sai vs. Dodge Cox Emerging | Fidelity Sai vs. Payden Emerging Markets | Fidelity Sai vs. Jpmorgan Emerging Markets | Fidelity Sai vs. Siit Emerging Markets |
| Federated Government vs. Auer Growth Fund | Federated Government vs. Ab Global Risk | Federated Government vs. Omni Small Cap Value | Federated Government vs. Ab Value Fund |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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