Correlation Between Lgm Risk and Fidelity Sai

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

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

Diversification Opportunities for Lgm Risk and Fidelity Sai

-0.26

Correlation Coefficient

Lgm Risk  Fidelity Sai

Very good diversification

The 3 months correlation between Lgm and Fidelity is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lgm Risk Managed and Fidelity Sai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Interna and Lgm Risk 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 Lgm Risk Managed are associated (or correlated) with Fidelity Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Interna has no effect on the direction of Lgm Risk i.e., Lgm Risk and Fidelity Sai go up and down completely randomly.

Pair Corralation between Lgm Risk and Fidelity Sai

Assuming the 90 days horizon Lgm Risk Managed is expected to under-perform the Fidelity Sai. But the mutual fund apears to be less risky and, when comparing its historical volatility, Lgm Risk Managed is 3.22 times less risky than Fidelity Sai. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Fidelity Sai International is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,170  in Fidelity Sai International on December 22, 2024 and sell it today you would earn a total of  108.00  from holding Fidelity Sai International or generate 9.23% return on investment over 90 days.

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

Lgm Risk Managed  vs.  Fidelity Sai International

Lgm Risk Managed

Risk-Adjusted Performance

Very Weak

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

Fidelity Sai Interna

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Sai International are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Fidelity Sai may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Lgm Risk and Fidelity Sai

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

The idea behind Lgm Risk Managed and Fidelity Sai International 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.