Correlation Between Fidelity International and Amg Managers

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

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

Diversification Opportunities for Fidelity International and Amg Managers

0.0

Correlation Coefficient

Fidelity International  Amg Managers

Pay attention - limited upside

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

Pair Corralation between Fidelity International and Amg Managers

If you would invest  4,760  in Fidelity International Index on December 29, 2024 and sell it today you would earn a total of  473.00  from holding Fidelity International Index or generate 9.94% return on investment over 90 days.

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

Fidelity International Index  vs.  Amg Managers Pictet

Fidelity International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity International Index are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity International may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Amg Managers Pictet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amg Managers Pictet has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Amg Managers 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 International and Amg Managers

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

The idea behind Fidelity International Index and Amg Managers Pictet 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.