Correlation Between Cornerstone Strategic and Fidelity Small

Can any of the company-specific risk be diversified away by investing in both Cornerstone Strategic and Fidelity Small 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 Cornerstone Strategic and Fidelity Small into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cornerstone Strategic Value and Fidelity Small Cap, you can compare the effects of market volatilities on Cornerstone Strategic and Fidelity Small 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 Cornerstone Strategic with a short position of Fidelity Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and Fidelity Small.

Diversification Opportunities for Cornerstone Strategic and Fidelity Small

0.54

Correlation Coefficient

Cornerstone Strategic  Fidelity Small

Very weak diversification

The 3 months correlation between Cornerstone and Fidelity is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and Fidelity Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Small Cap and Cornerstone 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 Cornerstone Strategic Value are associated (or correlated) with Fidelity Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Small Cap has no effect on the direction of Cornerstone Strategic i.e., Cornerstone Strategic and Fidelity Small go up and down completely randomly.

Pair Corralation between Cornerstone Strategic and Fidelity Small

If you would invest  818.00  in Cornerstone Strategic Value on September 9, 2025 and sell it today you would earn a total of  12.00  from holding Cornerstone Strategic Value or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Cornerstone Strategic Value  vs.  Fidelity Small Cap

Cornerstone Strategic

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cornerstone Strategic Value are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy essential indicators, Cornerstone Strategic is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Fidelity Small Cap

Risk-Adjusted Performance

Fair

Over the last 90 days Fidelity Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak fundamental indicators, Fidelity Small may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Cornerstone Strategic and Fidelity Small

The main advantage of trading using opposite Cornerstone Strategic and Fidelity Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Strategic position performs unexpectedly, Fidelity Small 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 Small will offset losses from the drop in Fidelity Small's long position.

The idea behind Cornerstone Strategic Value and Fidelity Small Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.