Correlation Between Kbi Global and Fidelity Global
Can any of the company-specific risk be diversified away by investing in both Kbi Global and Fidelity Global 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 Kbi Global and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Global Investors and Fidelity Global Modity, you can compare the effects of market volatilities on Kbi Global and Fidelity Global 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 Kbi Global with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Global and Fidelity Global.
Diversification Opportunities for Kbi Global and Fidelity Global
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kbi and Fidelity is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Global Investors and Fidelity Global Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Modity and Kbi 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 Kbi Global Investors are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Modity has no effect on the direction of Kbi Global i.e., Kbi Global and Fidelity Global go up and down completely randomly.
Pair Corralation between Kbi Global and Fidelity Global
Assuming the 90 days horizon Kbi Global is expected to generate 2.43 times less return on investment than Fidelity Global. But when comparing it to its historical volatility, Kbi Global Investors is 1.32 times less risky than Fidelity Global. It trades about 0.1 of its potential returns per unit of risk. Fidelity Global Modity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Fidelity Global Modity on January 26, 2024 and sell it today you would earn a total of 188.00 from holding Fidelity Global Modity or generate 10.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Global Investors vs. Fidelity Global Modity
Performance |
| Timeline |
| Kbi Global Investors |
| Fidelity Global Modity |
Kbi Global and Fidelity Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Global and Fidelity Global
The main advantage of trading using opposite Kbi Global and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Global position performs unexpectedly, Fidelity Global 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 Global will offset losses from the drop in Fidelity Global's long position.| Kbi Global vs. Pace Smallmedium Value | Kbi Global vs. Calvert Smallmid Cap A | Kbi Global vs. Lebenthal Lisanti Small | Kbi Global vs. Cardinal Small Cap |
| Fidelity Global vs. First American Funds | Fidelity Global vs. General Money Market | Fidelity Global vs. Goldman Sachs Trust | Fidelity Global vs. Transamerica Funds |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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