Correlation Between Large Capitalization and Fidelity Managed
Can any of the company-specific risk be diversified away by investing in both Large Capitalization and Fidelity 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 Large Capitalization and Fidelity Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Large Capitalization Growth and Fidelity Managed Retirement, you can compare the effects of market volatilities on Large Capitalization and Fidelity 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 Large Capitalization with a short position of Fidelity Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Large Capitalization and Fidelity Managed.
Diversification Opportunities for Large Capitalization and Fidelity Managed
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Large and Fidelity is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Large Capitalization Growth and Fidelity Managed Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Managed Ret and Large Capitalization 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 Large Capitalization Growth are associated (or correlated) with Fidelity Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Managed Ret has no effect on the direction of Large Capitalization i.e., Large Capitalization and Fidelity Managed go up and down completely randomly.
Pair Corralation between Large Capitalization and Fidelity Managed
Assuming the 90 days horizon Large Capitalization Growth is expected to generate 3.12 times more return on investment than Fidelity Managed. However, Large Capitalization is 3.12 times more volatile than Fidelity Managed Retirement. It trades about 0.12 of its potential returns per unit of risk. Fidelity Managed Retirement is currently generating about 0.23 per unit of risk. If you would invest 545.00 in Large Capitalization Growth on June 6, 2025 and sell it today you would earn a total of 34.00 from holding Large Capitalization Growth or generate 6.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Large Capitalization Growth vs. Fidelity Managed Retirement
Performance |
| Timeline |
| Large Capitalization |
Risk-Adjusted Performance
Fair
Weak | Strong |
| Fidelity Managed Ret |
Large Capitalization and Fidelity Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Large Capitalization and Fidelity Managed
The main advantage of trading using opposite Large Capitalization and Fidelity Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Large Capitalization position performs unexpectedly, Fidelity 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 Fidelity Managed will offset losses from the drop in Fidelity Managed's long position.| Large Capitalization vs. Strategic Advisers Income | Large Capitalization vs. Multi Manager High Yield | Large Capitalization vs. Msift High Yield | Large Capitalization vs. Neuberger Berman Income |
| Fidelity Managed vs. Live Oak Health | Fidelity Managed vs. Delaware Healthcare Fund | Fidelity Managed vs. Invesco Global Health | Fidelity Managed vs. The Gabelli Healthcare |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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