Correlation Between Multimanager Lifestyle and Fidelity Convertible
Can any of the company-specific risk be diversified away by investing in both Multimanager Lifestyle and Fidelity Convertible 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 Multimanager Lifestyle and Fidelity Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multimanager Lifestyle Growth and Fidelity Vertible Securities, you can compare the effects of market volatilities on Multimanager Lifestyle and Fidelity Convertible 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 Multimanager Lifestyle with a short position of Fidelity Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multimanager Lifestyle and Fidelity Convertible.
Diversification Opportunities for Multimanager Lifestyle and Fidelity Convertible
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Multimanager and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Multimanager Lifestyle Growth and Fidelity Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Convertible and Multimanager Lifestyle 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 Multimanager Lifestyle Growth are associated (or correlated) with Fidelity Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Convertible has no effect on the direction of Multimanager Lifestyle i.e., Multimanager Lifestyle and Fidelity Convertible go up and down completely randomly.
Pair Corralation between Multimanager Lifestyle and Fidelity Convertible
Assuming the 90 days horizon Multimanager Lifestyle is expected to generate 1.28 times less return on investment than Fidelity Convertible. But when comparing it to its historical volatility, Multimanager Lifestyle Growth is 1.12 times less risky than Fidelity Convertible. It trades about 0.22 of its potential returns per unit of risk. Fidelity Vertible Securities is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,426 in Fidelity Vertible Securities on May 29, 2025 and sell it today you would earn a total of 304.00 from holding Fidelity Vertible Securities or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multimanager Lifestyle Growth vs. Fidelity Vertible Securities
Performance |
| Timeline |
| Multimanager Lifestyle |
| Fidelity Convertible |
Multimanager Lifestyle and Fidelity Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multimanager Lifestyle and Fidelity Convertible
The main advantage of trading using opposite Multimanager Lifestyle and Fidelity Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multimanager Lifestyle position performs unexpectedly, Fidelity Convertible 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 Fidelity Convertible will offset losses from the drop in Fidelity Convertible's long position.| Multimanager Lifestyle vs. Astor Star Fund | Multimanager Lifestyle vs. Mh Elite Fund | Multimanager Lifestyle vs. Tax Managed Large Cap | Multimanager Lifestyle vs. Rational Strategic Allocation |
| Fidelity Convertible vs. Fidelity Freedom 2015 | Fidelity Convertible vs. Fidelity Puritan Fund | Fidelity Convertible vs. Fidelity Puritan Fund | Fidelity Convertible vs. Fidelity Pennsylvania Municipal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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