Correlation Between Qs Global and Fidelity Puritan

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

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

Diversification Opportunities for Qs Global and Fidelity Puritan

0.91

Correlation Coefficient

Qs Global  Fidelity Puritan

Almost no diversification

The 3 months correlation between SILLX and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Qs Global Equity and Fidelity Puritan Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Puritan and Qs Global 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 Qs Global Equity are associated (or correlated) with Fidelity Puritan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Puritan has no effect on the direction of Qs Global i.e., Qs Global and Fidelity Puritan go up and down completely randomly.

Pair Corralation between Qs Global and Fidelity Puritan

Assuming the 90 days horizon Qs Global Equity is expected to generate 1.15 times more return on investment than Fidelity Puritan. However, Qs Global is 1.15 times more volatile than Fidelity Puritan Fund. It trades about -0.12 of its potential returns per unit of risk. Fidelity Puritan Fund is currently generating about -0.19 per unit of risk. If you would invest  2,563  in Qs Global Equity on December 4, 2024 and sell it today you would lose (53.00) from holding Qs Global Equity or give up 2.07% of portfolio value over 90 days.

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

Qs Global Equity  vs.  Fidelity Puritan Fund

Qs Global Equity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qs Global Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Fidelity Puritan

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Qs Global and Fidelity Puritan

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

The idea behind Qs Global Equity and Fidelity Puritan Fund 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.