Correlation Between Fidelity Core and Fidelity All

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

By analyzing existing cross correlation between Fidelity Core Bond and Fidelity All in One Balanced, you can compare the effects of market volatilities on Fidelity Core and Fidelity All 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 Core with a short position of Fidelity All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Core and Fidelity All.

Diversification Opportunities for Fidelity Core and Fidelity All

0.47

Correlation Coefficient

Fidelity Core  Fidelity All

Very weak diversification

The 3 months correlation between Fidelity and Fidelity is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Core Bond and Fidelity All in One Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity All in and Fidelity Core 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 Core Bond are associated (or correlated) with Fidelity All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity All in has no effect on the direction of Fidelity Core i.e., Fidelity Core and Fidelity All go up and down completely randomly.

Pair Corralation between Fidelity Core and Fidelity All

Assuming the 90 days trading horizon Fidelity Core is expected to generate 4.51 times less return on investment than Fidelity All. But when comparing it to its historical volatility, Fidelity Core Bond is 1.35 times less risky than Fidelity All. It trades about 0.03 of its potential returns per unit of risk. Fidelity All in One Balanced is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,025  in Fidelity All in One Balanced on April 20, 2025 and sell it today you would earn a total of  336.00  from holding Fidelity All in One Balanced or generate 32.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	24.44%
Values	Daily Returns

Fidelity Core Bond  vs.  Fidelity All in One Balanced

Fidelity Core Bond

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Core Bond are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Fidelity Core is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Fidelity All in

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity All in One Balanced are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Fidelity All may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fidelity Core and Fidelity All

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

The idea behind Fidelity Core Bond and Fidelity All in One Balanced 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.