Correlation Between Issachar Fund and Fidelity Series

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Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Fidelity Series 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 Issachar Fund and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Fidelity Series 1000, you can compare the effects of market volatilities on Issachar Fund and Fidelity Series 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 Issachar Fund with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Fidelity Series.

Diversification Opportunities for Issachar Fund and Fidelity Series

IssacharFidelityDiversified AwayIssacharFidelityDiversified Away100%
0.81
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Issachar and Fidelity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Fidelity Series 1000 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series 1000 and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series 1000 has no effect on the direction of Issachar Fund i.e., Issachar Fund and Fidelity Series go up and down completely randomly.

Pair Corralation between Issachar Fund and Fidelity Series

Assuming the 90 days horizon Issachar Fund Class is expected to generate 1.13 times more return on investment than Fidelity Series. However, Issachar Fund is 1.13 times more volatile than Fidelity Series 1000. It trades about 0.2 of its potential returns per unit of risk. Fidelity Series 1000 is currently generating about 0.0 per unit of risk. If you would invest  931.00  in Issachar Fund Class on September 15, 2024 and sell it today you would earn a total of  105.00  from holding Issachar Fund Class or generate 11.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Issachar Fund Class  vs.  Fidelity Series 1000

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 2468101214
JavaScript chart by amCharts 3.21.15LIOTX FIOOX
       Timeline  
Issachar Fund Class 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec9.49.69.81010.210.410.6
Fidelity Series 1000 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Fidelity Series 1000 has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fidelity Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec1717.217.417.617.81818.2

Issachar Fund and Fidelity Series Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.51-1.88-1.25-0.620.01170.71.412.112.81 0.10.20.30.40.50.60.7
JavaScript chart by amCharts 3.21.15LIOTX FIOOX
       Returns  

Pair Trading with Issachar Fund and Fidelity Series

The main advantage of trading using opposite Issachar Fund and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Fidelity Series 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 Series will offset losses from the drop in Fidelity Series' long position.
The idea behind Issachar Fund Class and Fidelity Series 1000 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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