Correlation Between Fidelity Puritan and Fidelity Global

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan and Fidelity Global 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 Puritan and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Puritan Fund and Fidelity Global Modity, you can compare the effects of market volatilities on Fidelity Puritan and Fidelity Global 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 Puritan with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Fidelity Global.

Diversification Opportunities for Fidelity Puritan and Fidelity Global

0.68
  Correlation Coefficient

Poor diversification

The 3 months correlation between Fidelity and Fidelity is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Fidelity Global Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Modity and Fidelity Puritan 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 Puritan Fund are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Modity has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Fidelity Global go up and down completely randomly.

Pair Corralation between Fidelity Puritan and Fidelity Global

Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 0.57 times more return on investment than Fidelity Global. However, Fidelity Puritan Fund is 1.74 times less risky than Fidelity Global. It trades about 0.23 of its potential returns per unit of risk. Fidelity Global Modity is currently generating about 0.12 per unit of risk. If you would invest  2,402  in Fidelity Puritan Fund on September 5, 2024 and sell it today you would earn a total of  186.00  from holding Fidelity Puritan Fund or generate 7.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Fidelity Puritan Fund  vs.  Fidelity Global Modity

 Performance 
       Timeline  
Fidelity Puritan 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Puritan Fund are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward-looking signals, Fidelity Puritan may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Fidelity Global Modity 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Global Modity are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Fidelity Global may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Fidelity Puritan and Fidelity Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fidelity Puritan and Fidelity Global

The main advantage of trading using opposite Fidelity Puritan and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan position performs unexpectedly, Fidelity Global 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 Global will offset losses from the drop in Fidelity Global's long position.
The idea behind Fidelity Puritan Fund and Fidelity Global Modity 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Money Managers
Screen money managers from public funds and ETFs managed around the world
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities