Correlation Between Fidelity Active and ONESAVINGS BANK

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

By analyzing existing cross correlation between Fidelity Active Strategy and ONESAVINGS BANK FXD, you can compare the effects of market volatilities on Fidelity Active and ONESAVINGS BANK 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 Active with a short position of ONESAVINGS BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Active and ONESAVINGS BANK.

Diversification Opportunities for Fidelity Active and ONESAVINGS BANK

0.0

Correlation Coefficient

Fidelity Active  ONESAVINGS BANK

Pay attention - limited upside

The 3 months correlation between Fidelity and ONESAVINGS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Active Strategy and ONESAVINGS BANK FXD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONESAVINGS BANK FXD and Fidelity Active 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 Active Strategy are associated (or correlated) with ONESAVINGS BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONESAVINGS BANK FXD has no effect on the direction of Fidelity Active i.e., Fidelity Active and ONESAVINGS BANK go up and down completely randomly.

Pair Corralation between Fidelity Active and ONESAVINGS BANK

If you would invest (100.00) in ONESAVINGS BANK FXD on September 22, 2024 and sell it today you would earn a total of  100.00  from holding ONESAVINGS BANK FXD or generate -100.0% return on investment over 90 days.

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

Fidelity Active Strategy  vs.  ONESAVINGS BANK FXD

Fidelity Active Strategy

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Fidelity Active Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, Fidelity Active is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

ONESAVINGS BANK FXD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ONESAVINGS BANK FXD has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong fundamental drivers, ONESAVINGS BANK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidelity Active and ONESAVINGS BANK

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

The idea behind Fidelity Active Strategy and ONESAVINGS BANK FXD 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.