Correlation Between Fidelity Sai and ProShares Global

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

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

Diversification Opportunities for Fidelity Sai and ProShares Global

-0.07

Correlation Coefficient

Fidelity Sai  ProShares Global

Good diversification

The 3 months correlation between Fidelity and ProShares is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai International and ProShares Global Listed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Global Listed 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 International are associated (or correlated) with ProShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Global Listed has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and ProShares Global go up and down completely randomly.

Pair Corralation between Fidelity Sai and ProShares Global

Assuming the 90 days horizon Fidelity Sai International is expected to under-perform the ProShares Global. In addition to that, Fidelity Sai is 1.1 times more volatile than ProShares Global Listed. It trades about -0.04 of its total potential returns per unit of risk. ProShares Global Listed is currently generating about 0.12 per unit of volatility. If you would invest  2,757  in ProShares Global Listed on September 12, 2024 and sell it today you would earn a total of  148.01  from holding ProShares Global Listed or generate 5.37% return on investment over 90 days.

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

Fidelity Sai International  vs.  ProShares Global Listed

Fidelity Sai Interna

Risk-Adjusted Performance

0 of 100

Very Weak

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

ProShares Global Listed

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Global Listed are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, ProShares Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Fidelity Sai and ProShares Global

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

The idea behind Fidelity Sai International and ProShares Global Listed 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.