Correlation Between Fidelity Small and Oakmark International
Can any of the company-specific risk be diversified away by investing in both Fidelity Small and Oakmark International 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 Small and Oakmark International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Small Cap and Oakmark International Small, you can compare the effects of market volatilities on Fidelity Small and Oakmark International 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 Small with a short position of Oakmark International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Small and Oakmark International.
Diversification Opportunities for Fidelity Small and Oakmark International
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Oakmark is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Small Cap and Oakmark International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark International and Fidelity Small 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 Small Cap are associated (or correlated) with Oakmark International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark International has no effect on the direction of Fidelity Small i.e., Fidelity Small and Oakmark International go up and down completely randomly.
Pair Corralation between Fidelity Small and Oakmark International
Assuming the 90 days horizon Fidelity Small Cap is expected to generate 1.52 times more return on investment than Oakmark International. However, Fidelity Small is 1.52 times more volatile than Oakmark International Small. It trades about 0.13 of its potential returns per unit of risk. Oakmark International Small is currently generating about -0.01 per unit of risk. If you would invest 2,502 in Fidelity Small Cap on September 12, 2024 and sell it today you would earn a total of 263.00 from holding Fidelity Small Cap or generate 10.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Small Cap vs. Oakmark International Small
Performance |
Timeline |
Fidelity Small Cap |
Oakmark International |
Fidelity Small and Oakmark International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Small and Oakmark International
The main advantage of trading using opposite Fidelity Small and Oakmark International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Small position performs unexpectedly, Oakmark International 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 Oakmark International will offset losses from the drop in Oakmark International's long position.Fidelity Small vs. Fidelity Large Cap | Fidelity Small vs. Fidelity Small Cap | Fidelity Small vs. Fidelity Mid Cap | Fidelity Small vs. Fidelity Mid Cap |
Oakmark International vs. Lsv Small Cap | Oakmark International vs. Great West Loomis Sayles | Oakmark International vs. Royce Opportunity Fund | Oakmark International vs. Fidelity Small Cap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |