Correlation Between Fidelity Sai and Payden Government
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Payden 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 Payden 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 Payden Government Fund, you can compare the effects of market volatilities on Fidelity Sai and Payden 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 Payden Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Payden Government.
Diversification Opportunities for Fidelity Sai and Payden Government
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Payden is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Payden Government Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden 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 Payden Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Government has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Payden Government go up and down completely randomly.
Pair Corralation between Fidelity Sai and Payden Government
Assuming the 90 days horizon Fidelity Sai is expected to generate 1.12 times less return on investment than Payden Government. But when comparing it to its historical volatility, Fidelity Sai Convertible is 1.63 times less risky than Payden Government. It trades about 0.34 of its potential returns per unit of risk. Payden Government Fund is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 935.00 in Payden Government Fund on June 13, 2025 and sell it today you would earn a total of 21.00 from holding Payden Government Fund or generate 2.25% 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. Payden Government Fund
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Payden Government |
Fidelity Sai and Payden Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Payden Government
The main advantage of trading using opposite Fidelity Sai and Payden Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Payden 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 Payden Government will offset losses from the drop in Payden Government's long position.| Fidelity Sai vs. Mesirow Financial High | Fidelity Sai vs. Virtus High Yield | Fidelity Sai vs. Msift High Yield | Fidelity Sai vs. Pace High Yield |
| Payden Government vs. Payden E Bond | Payden Government vs. Payden Emerging Markets | Payden Government vs. Payden California Municipal | Payden Government vs. Payden E Bond |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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