Correlation Between Vanguard Total and Fidelity Sai

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

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

Diversification Opportunities for Vanguard Total and Fidelity Sai

0.93

Correlation Coefficient

Vanguard Total  Fidelity Sai

Almost no diversification

The 3 months correlation between Vanguard and Fidelity is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total International 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 Vanguard Total 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 Vanguard Total International 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 Vanguard Total i.e., Vanguard Total and Fidelity Sai go up and down completely randomly.

Pair Corralation between Vanguard Total and Fidelity Sai

Assuming the 90 days horizon Vanguard Total International is expected to generate 1.22 times more return on investment than Fidelity Sai. However, Vanguard Total is 1.22 times more volatile than Fidelity Sai International. It trades about 0.05 of its potential returns per unit of risk. Fidelity Sai International is currently generating about 0.01 per unit of risk. If you would invest  11,531  in Vanguard Total International on October 5, 2024 and sell it today you would earn a total of  1,144  from holding Vanguard Total International or generate 9.92% return on investment over 90 days.

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

Vanguard Total International  vs.  Fidelity Sai International

Vanguard Total Inter

Risk-Adjusted Performance

0 of 100

Very Weak

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

Fidelity Sai Interna

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fidelity Sai International 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.

Pair Trading with Vanguard Total and Fidelity Sai

The main advantage of trading using opposite Vanguard Total and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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 Vanguard Total International 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.