Correlation Between Fidelity MSCI and Alibaba Group
Can any of the company-specific risk be diversified away by investing in both Fidelity MSCI and Alibaba Group 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 MSCI and Alibaba Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity MSCI Information and Alibaba Group Holding, you can compare the effects of market volatilities on Fidelity MSCI and Alibaba Group 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 MSCI with a short position of Alibaba Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity MSCI and Alibaba Group.
Diversification Opportunities for Fidelity MSCI and Alibaba Group
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Alibaba is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity MSCI Information and Alibaba Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Group Holding and Fidelity MSCI 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 MSCI Information are associated (or correlated) with Alibaba Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Group Holding has no effect on the direction of Fidelity MSCI i.e., Fidelity MSCI and Alibaba Group go up and down completely randomly.
Pair Corralation between Fidelity MSCI and Alibaba Group
Given the investment horizon of 90 days Fidelity MSCI Information is expected to under-perform the Alibaba Group. But the etf apears to be less risky and, when comparing its historical volatility, Fidelity MSCI Information is 1.38 times less risky than Alibaba Group. The etf trades about -0.2 of its potential returns per unit of risk. The Alibaba Group Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 874,100 in Alibaba Group Holding on January 26, 2024 and sell it today you would earn a total of 6,150 from holding Alibaba Group Holding or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Fidelity MSCI Information vs. Alibaba Group Holding
Performance |
| Timeline |
| Fidelity MSCI Information |
| Alibaba Group Holding |
Fidelity MSCI and Alibaba Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity MSCI and Alibaba Group
The main advantage of trading using opposite Fidelity MSCI and Alibaba Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity MSCI position performs unexpectedly, Alibaba Group 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 Alibaba Group will offset losses from the drop in Alibaba Group's long position.| Fidelity MSCI vs. OShares Quality Dividend | Fidelity MSCI vs. Aquagold International | Fidelity MSCI vs. Morningstar Unconstrained Allocation | Fidelity MSCI vs. High Yield Municipal Fund |
| Alibaba Group vs. Harmony Gold Mining | Alibaba Group vs. Agrometal SAI | Alibaba Group vs. Transportadora de Gas | Alibaba Group vs. Compania de Transporte |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |