Correlation Between World Acceptance and Fidelity Equity-income
Can any of the company-specific risk be diversified away by investing in both World Acceptance and Fidelity Equity-income 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 World Acceptance and Fidelity Equity-income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Acceptance and Fidelity Equity Income Fund, you can compare the effects of market volatilities on World Acceptance and Fidelity Equity-income 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 World Acceptance with a short position of Fidelity Equity-income. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Acceptance and Fidelity Equity-income.
Diversification Opportunities for World Acceptance and Fidelity Equity-income
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between World and Fidelity is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding World Acceptance and Fidelity Equity Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Equity Income and World Acceptance 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 World Acceptance are associated (or correlated) with Fidelity Equity-income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Equity Income has no effect on the direction of World Acceptance i.e., World Acceptance and Fidelity Equity-income go up and down completely randomly.
Pair Corralation between World Acceptance and Fidelity Equity-income
Given the investment horizon of 90 days World Acceptance is expected to generate 4.16 times more return on investment than Fidelity Equity-income. However, World Acceptance is 4.16 times more volatile than Fidelity Equity Income Fund. It trades about 0.09 of its potential returns per unit of risk. Fidelity Equity Income Fund is currently generating about 0.16 per unit of risk. If you would invest 15,408 in World Acceptance on June 12, 2025 and sell it today you would earn a total of 1,807 from holding World Acceptance or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
World Acceptance vs. Fidelity Equity Income Fund
Performance |
| Timeline |
| World Acceptance |
| Fidelity Equity Income |
World Acceptance and Fidelity Equity-income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Acceptance and Fidelity Equity-income
The main advantage of trading using opposite World Acceptance and Fidelity Equity-income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Acceptance position performs unexpectedly, Fidelity Equity-income 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 Equity-income will offset losses from the drop in Fidelity Equity-income's long position.| World Acceptance vs. FirstCash | World Acceptance vs. Enova International | World Acceptance vs. Green Dot | World Acceptance vs. Medallion Financial Corp |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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