Correlation Between Fidelity 500 and Short-intermediate
Can any of the company-specific risk be diversified away by investing in both Fidelity 500 and Short-intermediate 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 500 and Short-intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity 500 Index and Short Intermediate Bond Fund, you can compare the effects of market volatilities on Fidelity 500 and Short-intermediate 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 500 with a short position of Short-intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity 500 and Short-intermediate.
Diversification Opportunities for Fidelity 500 and Short-intermediate
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Short-intermediate is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity 500 Index and Short Intermediate Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Short Intermediate Bond and Fidelity 500 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 500 Index are associated (or correlated) with Short-intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Short Intermediate Bond has no effect on the direction of Fidelity 500 i.e., Fidelity 500 and Short-intermediate go up and down completely randomly.
Pair Corralation between Fidelity 500 and Short-intermediate
Assuming the 90 days horizon Fidelity 500 Index is expected to generate 11.86 times more return on investment than Short-intermediate. However, Fidelity 500 is 11.86 times more volatile than Short Intermediate Bond Fund. It trades about 0.23 of its potential returns per unit of risk. Short Intermediate Bond Fund is currently generating about 0.12 per unit of risk. If you would invest 17,577 in Fidelity 500 Index on April 7, 2025 and sell it today you would earn a total of 4,297 from holding Fidelity 500 Index or generate 24.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity 500 Index vs. Short Intermediate Bond Fund
Performance |
| Timeline |
| Fidelity 500 Index |
| Short Intermediate Bond |
Fidelity 500 and Short-intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity 500 and Short-intermediate
The main advantage of trading using opposite Fidelity 500 and Short-intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity 500 position performs unexpectedly, Short-intermediate 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 Short-intermediate will offset losses from the drop in Short-intermediate's long position.| Fidelity 500 vs. Miller Vertible Bond | Fidelity 500 vs. Allianzgi Convertible Income | Fidelity 500 vs. Harbor Vertible Securities | Fidelity 500 vs. Franklin Vertible Securities |
| Short-intermediate vs. Financials Ultrasector Profund | Short-intermediate vs. Angel Oak Financial | Short-intermediate vs. Putnam Global Financials | Short-intermediate vs. 1919 Financial Services |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |