Fidelity Natural Correlations

FNARX Fund  USD 45.25  0.26  0.57%   
The current 90-days correlation between Fidelity Natural Res and Fidelity Select Portfolios is 0.87 (i.e., Very poor diversification). The correlation of Fidelity Natural is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Fidelity Natural Correlation With Market

Significant diversification

The correlation between Fidelity Natural Resources and DJI is 0.09 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Natural Resources and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Fidelity Natural Resources. Also, note that the market value of any mutual fund could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.

Moving together with Fidelity Mutual Fund

  0.72FQIPX Fidelity Freedom IndexPairCorr
  0.71FRLPX Fidelity Freedom IndexPairCorr
  0.7FABLX Fidelity Advisor BalancedPairCorr
  0.61FAEGX Fidelity Advisor EquityPairCorr
  0.65FAGIX Fidelity Capital IncomePairCorr
  0.7FAIOX Fidelity Advisor BalancedPairCorr
  0.73FAMKX Fidelity Advisor EmergingPairCorr
  0.82FANIX Fidelity Advisor EnergyPairCorr
  0.82FANAX Fidelity Advisor EnergyPairCorr
  0.69FSCHX Chemicals PortfolioPairCorr
  0.67FSELX Fidelity Select SemiPairCorr
  0.82FSENX Fidelity Select PortPairCorr
  0.64FSDIX Fidelity StrategicPairCorr
  0.78FSDPX Materials PortfolioPairCorr
  0.82FSEAX Fidelity Emerging AsiaPairCorr

Moving against Fidelity Mutual Fund

  0.34FSHCX Health Care ServicesPairCorr

Related Correlations Analysis

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Risk-Adjusted Indicators

There is a big difference between Fidelity Mutual Fund performing well and Fidelity Natural Mutual Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Fidelity Natural's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.