Correlation Between Fidelity Sai and Hunter Small

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

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

Diversification Opportunities for Fidelity Sai and Hunter Small

-0.46

Correlation Coefficient

Fidelity Sai  Hunter Small

Very good diversification

The 3 months correlation between Fidelity and Hunter is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Inflationfocused and Hunter Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Small Cap and Fidelity Sai 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 Sai Inflationfocused are associated (or correlated) with Hunter Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Small Cap has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Hunter Small go up and down completely randomly.

Pair Corralation between Fidelity Sai and Hunter Small

Assuming the 90 days horizon Fidelity Sai is expected to generate 2.21 times less return on investment than Hunter Small. But when comparing it to its historical volatility, Fidelity Sai Inflationfocused is 1.09 times less risky than Hunter Small. It trades about 0.04 of its potential returns per unit of risk. Hunter Small Cap is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,024  in Hunter Small Cap on October 21, 2024 and sell it today you would earn a total of  248.00  from holding Hunter Small Cap or generate 24.22% return on investment over 90 days.

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

Fidelity Sai Inflationfocused  vs.  Hunter Small Cap

Fidelity Sai Inflati

Risk-Adjusted Performance

10 of 100

OK

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

Hunter Small Cap

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hunter Small Cap are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Hunter Small is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidelity Sai and Hunter Small

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

The idea behind Fidelity Sai Inflationfocused and Hunter Small Cap 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.