Correlation Between 361 Global and Fidelity Series

Can any of the company-specific risk be diversified away by investing in both 361 Global and Fidelity Series 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 361 Global and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 361 Global Longshort and Fidelity Series International, you can compare the effects of market volatilities on 361 Global and Fidelity Series 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 361 Global with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of 361 Global and Fidelity Series.

Diversification Opportunities for 361 Global and Fidelity Series

-0.31

Correlation Coefficient

361 Global  Fidelity Series

Very good diversification

The 3 months correlation between 361 and Fidelity is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding 361 Global Longshort and Fidelity Series International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Inte and 361 Global 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 361 Global Longshort are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Inte has no effect on the direction of 361 Global i.e., 361 Global and Fidelity Series go up and down completely randomly.

Pair Corralation between 361 Global and Fidelity Series

Assuming the 90 days horizon 361 Global Longshort is expected to under-perform the Fidelity Series. In addition to that, 361 Global is 2.28 times more volatile than Fidelity Series International. It trades about -0.12 of its total potential returns per unit of risk. Fidelity Series International is currently generating about 0.34 per unit of volatility. If you would invest  1,188  in Fidelity Series International on December 2, 2024 and sell it today you would earn a total of  131.00  from holding Fidelity Series International or generate 11.03% return on investment over 90 days.

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

361 Global Longshort  vs.  Fidelity Series International

361 Global Longshort

Risk-Adjusted Performance

Very Weak

Over the last 90 days 361 Global Longshort has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Fidelity Series Inte

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Series International are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Series may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with 361 Global and Fidelity Series

The main advantage of trading using opposite 361 Global and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 361 Global position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.

The idea behind 361 Global Longshort and Fidelity Series International 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.