Correlation Between Fidelity Sai and Anchor Tactical

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

By analyzing existing cross correlation between Fidelity Sai Quality and Anchor Tactical Credit, you can compare the effects of market volatilities on Fidelity Sai and Anchor Tactical 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 Anchor Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Sai and Anchor Tactical.

Diversification Opportunities for Fidelity Sai and Anchor Tactical

0.69

Correlation Coefficient

Fidelity Sai  Anchor Tactical

Poor diversification

The 3 months correlation between Fidelity and Anchor is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Sai Quality and Anchor Tactical Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Tactical Credit 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 Quality are associated (or correlated) with Anchor Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Tactical Credit has no effect on the direction of Fidelity Sai i.e., Fidelity Sai and Anchor Tactical go up and down completely randomly.

Pair Corralation between Fidelity Sai and Anchor Tactical

Assuming the 90 days horizon Fidelity Sai Quality is expected to under-perform the Anchor Tactical. In addition to that, Fidelity Sai is 1.53 times more volatile than Anchor Tactical Credit. It trades about -0.06 of its total potential returns per unit of risk. Anchor Tactical Credit is currently generating about 0.04 per unit of volatility. If you would invest  1,611  in Anchor Tactical Credit on December 29, 2024 and sell it today you would earn a total of  22.00  from holding Anchor Tactical Credit or generate 1.37% return on investment over 90 days.

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

Fidelity Sai Quality  vs.  Anchor Tactical Credit

Fidelity Sai Quality

Risk-Adjusted Performance

Very Weak

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

Anchor Tactical Credit

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Anchor Tactical Credit are ranked lower than 3 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Anchor Tactical 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 Sai and Anchor Tactical

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

The idea behind Fidelity Sai Quality and Anchor Tactical Credit 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.