Correlation Between NVIDIA and Fidelity Active

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

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

Diversification Opportunities for NVIDIA and Fidelity Active

0.0

Correlation Coefficient

NVIDIA  Fidelity Active

Pay attention - limited upside

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

Pair Corralation between NVIDIA and Fidelity Active

If you would invest (100.00) in Fidelity Active Strategy on October 22, 2024 and sell it today you would earn a total of  100.00  from holding Fidelity Active Strategy or generate -100.0% return on investment over 90 days.

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

NVIDIA  vs.  Fidelity Active Strategy

NVIDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NVIDIA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, NVIDIA is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Fidelity Active Strategy

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Active Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, Fidelity Active is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with NVIDIA and Fidelity Active

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

The idea behind NVIDIA and Fidelity Active Strategy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.