Correlation Between Pace Strategic and Fidelity Strategic
Can any of the company-specific risk be diversified away by investing in both Pace Strategic and Fidelity Strategic 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 Pace Strategic and Fidelity Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pace Strategic Fixed and Fidelity Strategic Dividend, you can compare the effects of market volatilities on Pace Strategic and Fidelity Strategic 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 Pace Strategic with a short position of Fidelity Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pace Strategic and Fidelity Strategic.
Diversification Opportunities for Pace Strategic and Fidelity Strategic
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pace and Fidelity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Pace Strategic Fixed and Fidelity Strategic Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Strategic and Pace Strategic 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 Pace Strategic Fixed are associated (or correlated) with Fidelity Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Strategic has no effect on the direction of Pace Strategic i.e., Pace Strategic and Fidelity Strategic go up and down completely randomly.
Pair Corralation between Pace Strategic and Fidelity Strategic
Assuming the 90 days horizon Pace Strategic is expected to generate 4.0 times less return on investment than Fidelity Strategic. But when comparing it to its historical volatility, Pace Strategic Fixed is 2.92 times less risky than Fidelity Strategic. It trades about 0.06 of its potential returns per unit of risk. Fidelity Strategic Dividend is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,795 in Fidelity Strategic Dividend on September 10, 2025 and sell it today you would earn a total of 48.00 from holding Fidelity Strategic Dividend or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pace Strategic Fixed vs. Fidelity Strategic Dividend
Performance |
| Timeline |
| Pace Strategic Fixed |
| Fidelity Strategic |
Pace Strategic and Fidelity Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pace Strategic and Fidelity Strategic
The main advantage of trading using opposite Pace Strategic and Fidelity Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pace Strategic position performs unexpectedly, Fidelity Strategic 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 Strategic will offset losses from the drop in Fidelity Strategic's long position.| Pace Strategic vs. American Funds Conservative | Pace Strategic vs. Columbia Diversified Equity | Pace Strategic vs. Federated Hermes Conservative | Pace Strategic vs. Stone Ridge Diversified |
| Fidelity Strategic vs. Fidelity Strategic Dividend | Fidelity Strategic vs. JP Morgan Exchange Traded | Fidelity Strategic vs. Fidelity Covington Trust | Fidelity Strategic vs. Amplify CWP Enhanced |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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