Correlation Between Fidelity Summer and Fidelity Founders

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

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

Diversification Opportunities for Fidelity Summer and Fidelity Founders

0.0

Correlation Coefficient

Fidelity Summer  Fidelity Founders

Pay attention - limited upside

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

Pair Corralation between Fidelity Summer and Fidelity Founders

If you would invest  2,412  in Fidelity Founders on October 27, 2024 and sell it today you would earn a total of  80.00  from holding Fidelity Founders or generate 3.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Fidelity Summer Street  vs.  Fidelity Founders

Fidelity Summer Street

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Summer Street has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Fidelity Summer is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Founders

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Founders are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Founders may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Fidelity Summer and Fidelity Founders

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

The idea behind Fidelity Summer Street and Fidelity Founders 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.