Correlation Between Fidelity Sai and Transamerica Multi-managed
Can any of the company-specific risk be diversified away by investing in both Fidelity Sai and Transamerica Multi-managed 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 Transamerica Multi-managed 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 Transamerica Multi Managed Balanced, you can compare the effects of market volatilities on Fidelity Sai and Transamerica Multi-managed 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 Transamerica Multi-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Transamerica Multi-managed.
Diversification Opportunities for Fidelity Sai and Transamerica Multi-managed
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Transamerica is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Convertible and Transamerica Multi Managed Bal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Multi-managed 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 Transamerica Multi-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Multi-managed has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Transamerica Multi-managed go up and down completely randomly.
Pair Corralation between Fidelity Sai and Transamerica Multi-managed
Assuming the 90 days horizon Fidelity Sai Convertible is expected to under-perform the Transamerica Multi-managed. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Sai Convertible is 2.73 times less risky than Transamerica Multi-managed. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Transamerica Multi Managed Balanced is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,784 in Transamerica Multi Managed Balanced on September 2, 2025 and sell it today you would earn a total of 13.00 from holding Transamerica Multi Managed Balanced or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Sai Convertible vs. Transamerica Multi Managed Bal
Performance |
| Timeline |
| Fidelity Sai Convertible |
| Transamerica Multi-managed |
Fidelity Sai and Transamerica Multi-managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Sai and Transamerica Multi-managed
The main advantage of trading using opposite Fidelity Sai and Transamerica Multi-managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Sai position performs unexpectedly, Transamerica Multi-managed 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 Transamerica Multi-managed will offset losses from the drop in Transamerica Multi-managed's long position.| Fidelity Sai vs. Alger Health Sciences | Fidelity Sai vs. Deutsche Health And | Fidelity Sai vs. Invesco Global Health | Fidelity Sai vs. Delaware Healthcare 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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