Correlation Between Cref Inflation and Fidelity Sai

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

By analyzing existing cross correlation between Cref Inflation Linked Bond and Fidelity Sai Inflationfocused, you can compare the effects of market volatilities on Cref Inflation and Fidelity Sai 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 Cref Inflation with a short position of Fidelity Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Fidelity Sai.

Diversification Opportunities for Cref Inflation and Fidelity Sai

-0.07

Correlation Coefficient

Cref Inflation  Fidelity Sai

Good diversification

The 3 months correlation between Cref and Fidelity is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Fidelity Sai Inflationfocused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Inflati and Cref Inflation 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 Cref Inflation Linked Bond are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Inflati has no effect on the direction of Cref Inflation i.e., Cref Inflation and Fidelity Sai go up and down completely randomly.

Pair Corralation between Cref Inflation and Fidelity Sai

Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to under-perform the Fidelity Sai. But the fund apears to be less risky and, when comparing its historical volatility, Cref Inflation Linked Bond is 7.19 times less risky than Fidelity Sai. The fund trades about -0.02 of its potential returns per unit of risk. The Fidelity Sai Inflationfocused is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  8,735  in Fidelity Sai Inflationfocused on September 15, 2025 and sell it today you would earn a total of  78.00  from holding Fidelity Sai Inflationfocused or generate 0.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cref Inflation Linked Bond  vs.  Fidelity Sai Inflationfocused

Cref Inflation Linked

Risk-Adjusted Performance

Weakest

Over the last 90 days Cref Inflation Linked Bond has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Cref Inflation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Sai Inflati

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai Inflationfocused are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fidelity Sai is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cref Inflation and Fidelity Sai

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

The idea behind Cref Inflation Linked Bond and Fidelity Sai Inflationfocused 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.