Correlation Between Fidelity Small and Mutual Of
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Mutual Of 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 Small and Mutual Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Mutual Of America, you can compare the effects of market volatilities on Fidelity Small and Mutual Of 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 Small with a short position of Mutual Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Mutual Of.
Diversification Opportunities for Fidelity Small and Mutual Of
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Mutual is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Mutual Of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mutual Of America and Fidelity Small 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 Small Cap are associated (or correlated) with Mutual Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mutual Of America has no effect on the direction of Fidelity Small i.e., Fidelity Small and Mutual Of go up and down completely randomly.
Pair Corralation between Fidelity Small and Mutual Of
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 1.06 times more return on investment than Mutual Of. However, Fidelity Small is 1.06 times more volatile than Mutual Of America. It trades about 0.07 of its potential returns per unit of risk. Mutual Of America is currently generating about 0.05 per unit of risk. If you would invest 2,948 in Fidelity Small Cap on September 2, 2025 and sell it today you would earn a total of 157.00 from holding Fidelity Small Cap or generate 5.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Small Cap vs. Mutual Of America
Performance |
| Timeline |
| Fidelity Small Cap |
| Mutual Of America |
Fidelity Small and Mutual Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Small and Mutual Of
The main advantage of trading using opposite Fidelity Small and Mutual Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Mutual Of 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 Mutual Of will offset losses from the drop in Mutual Of's long position.| Fidelity Small vs. Calvert Bond Portfolio | Fidelity Small vs. Multisector Bond Sma | Fidelity Small vs. Intermediate Term Bond Fund | Fidelity Small vs. Flexible Bond Portfolio |
| Mutual Of vs. Dunham Porategovernment Bond | Mutual Of vs. Blackrock Government Bond | Mutual Of vs. Wells Fargo Government | Mutual Of vs. Jpmorgan Government 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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