Correlation Between Aggressive Growth and Fidelity Growth
Can any of the company-specific risk be diversified away by investing in both Aggressive Growth and Fidelity Growth 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 Aggressive Growth and Fidelity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aggressive Growth Fund and Fidelity Growth Pany, you can compare the effects of market volatilities on Aggressive Growth and Fidelity Growth 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 Aggressive Growth with a short position of Fidelity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aggressive Growth and Fidelity Growth.
Diversification Opportunities for Aggressive Growth and Fidelity Growth
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Aggressive and Fidelity is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Aggressive Growth Fund and Fidelity Growth Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Pany and Aggressive Growth 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 Aggressive Growth Fund are associated (or correlated) with Fidelity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Growth Pany has no effect on the direction of Aggressive Growth i.e., Aggressive Growth and Fidelity Growth go up and down completely randomly.
Pair Corralation between Aggressive Growth and Fidelity Growth
Assuming the 90 days horizon Aggressive Growth Fund is expected to generate 1.03 times more return on investment than Fidelity Growth. However, Aggressive Growth is 1.03 times more volatile than Fidelity Growth Pany. It trades about -0.04 of its potential returns per unit of risk. Fidelity Growth Pany is currently generating about -0.05 per unit of risk. If you would invest 5,992 in Aggressive Growth Fund on January 24, 2024 and sell it today you would lose (118.00) from holding Aggressive Growth Fund or give up 1.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aggressive Growth Fund vs. Fidelity Growth Pany
Performance |
| Timeline |
| Aggressive Growth |
| Fidelity Growth Pany |
Aggressive Growth and Fidelity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aggressive Growth and Fidelity Growth
The main advantage of trading using opposite Aggressive Growth and Fidelity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aggressive Growth position performs unexpectedly, Fidelity Growth 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 Growth will offset losses from the drop in Fidelity Growth's long position.| Aggressive Growth vs. Income Stock Fund | Aggressive Growth vs. Emerging Markets Fund | Aggressive Growth vs. International Fund International | Aggressive Growth vs. Small Cap Stock |
| Fidelity Growth vs. Fidelity Freedom 2015 | Fidelity Growth vs. Fidelity Puritan Fund | Fidelity Growth vs. Fidelity Puritan Fund | Fidelity Growth 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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