Correlation Between Fidelity Blue and IShares Factors

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

By analyzing existing cross correlation between Fidelity Blue Chip and iShares Factors Growth, you can compare the effects of market volatilities on Fidelity Blue and IShares Factors 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 Blue with a short position of IShares Factors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Blue and IShares Factors.

Diversification Opportunities for Fidelity Blue and IShares Factors

0.0

Correlation Coefficient

Fidelity Blue  IShares Factors

Pay attention - limited upside

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

Pair Corralation between Fidelity Blue and IShares Factors

If you would invest (100.00) in iShares Factors Growth on December 28, 2024 and sell it today you would earn a total of  100.00  from holding iShares Factors Growth or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fidelity Blue Chip  vs.  iShares Factors Growth

Fidelity Blue Chip

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Blue Chip has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Etf's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the Exchange Traded Fund stockholders.

iShares Factors Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days iShares Factors Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, IShares Factors is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Fidelity Blue and IShares Factors

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

The idea behind Fidelity Blue Chip and iShares Factors Growth 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.