Correlation Between Omni Small and Fidelity Sai

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

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

Diversification Opportunities for Omni Small and Fidelity Sai

-0.37

Correlation Coefficient

Omni Small  Fidelity Sai

Very good diversification

The 3 months correlation between Omni and Fidelity is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Omni Small Cap Value and Fidelity Sai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Interna and Omni Small 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 Omni Small Cap Value 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 Interna has no effect on the direction of Omni Small i.e., Omni Small and Fidelity Sai go up and down completely randomly.

Pair Corralation between Omni Small and Fidelity Sai

Assuming the 90 days horizon Omni Small Cap Value is expected to under-perform the Fidelity Sai. In addition to that, Omni Small is 1.88 times more volatile than Fidelity Sai International. It trades about -0.11 of its total potential returns per unit of risk. Fidelity Sai International is currently generating about 0.28 per unit of volatility. If you would invest  1,076  in Fidelity Sai International on December 20, 2024 and sell it today you would earn a total of  112.00  from holding Fidelity Sai International or generate 10.41% return on investment over 90 days.

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

Omni Small Cap Value  vs.  Fidelity Sai International

Omni Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Omni Small Cap Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Fidelity Sai Interna

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai International are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Fidelity Sai may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Omni Small and Fidelity Sai

The main advantage of trading using opposite Omni Small and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Omni Small 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 Omni Small Cap Value and Fidelity Sai 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.