Correlation Between Fidelity Series and Nasdaq-100(r)
Can any of the company-specific risk be diversified away by investing in both Fidelity Series and Nasdaq-100(r) 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 Series and Nasdaq-100(r) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Series Long Term and Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Fidelity Series and Nasdaq-100(r) 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 Series with a short position of Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Series and Nasdaq-100(r).
Diversification Opportunities for Fidelity Series and Nasdaq-100(r)
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Nasdaq-100(r) is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Series Long Term and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x and Fidelity Series 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 Series Long Term are associated (or correlated) with Nasdaq-100(r). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Fidelity Series i.e., Fidelity Series and Nasdaq-100(r) go up and down completely randomly.
Pair Corralation between Fidelity Series and Nasdaq-100(r)
Assuming the 90 days horizon Fidelity Series Long Term is expected to generate 0.31 times more return on investment than Nasdaq-100(r). However, Fidelity Series Long Term is 3.24 times less risky than Nasdaq-100(r). It trades about 0.18 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about -0.01 per unit of risk. If you would invest 529.00 in Fidelity Series Long Term on December 2, 2024 and sell it today you would earn a total of 29.00 from holding Fidelity Series Long Term or generate 5.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Series Long Term vs. Nasdaq 100 2x Strategy
Performance |
Timeline |
Fidelity Series Long |
Nasdaq 100 2x |
Fidelity Series and Nasdaq-100(r) Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Series and Nasdaq-100(r)
The main advantage of trading using opposite Fidelity Series and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Series position performs unexpectedly, Nasdaq-100(r) 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 Nasdaq-100(r) will offset losses from the drop in Nasdaq-100(r)'s long position.Fidelity Series vs. Massmutual Retiresmart Moderate | Fidelity Series vs. Great West Moderately Servative | Fidelity Series vs. Jp Morgan Smartretirement | Fidelity Series vs. Hartford Moderate Allocation |
Nasdaq-100(r) vs. Morningstar Unconstrained Allocation | Nasdaq-100(r) vs. Upright Assets Allocation | Nasdaq-100(r) vs. Touchstone Large Cap | Nasdaq-100(r) vs. Principal Lifetime Hybrid |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |