Correlation Between Fidelity High and Middlefield Equity

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

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

Diversification Opportunities for Fidelity High and Middlefield Equity

0.0

Correlation Coefficient

Fidelity High  Middlefield Equity

Pay attention - limited upside

The 3 months correlation between Fidelity and Middlefield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity High Dividend and Middlefield Equity Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Middlefield Equity and Fidelity High 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 High Dividend are associated (or correlated) with Middlefield Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Middlefield Equity has no effect on the direction of Fidelity High i.e., Fidelity High and Middlefield Equity go up and down completely randomly.

Pair Corralation between Fidelity High and Middlefield Equity

If you would invest  1,864  in Middlefield Equity Dividend on April 24, 2025 and sell it today you would earn a total of  221.00  from holding Middlefield Equity Dividend or generate 11.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Fidelity High Dividend  vs.  Middlefield Equity Dividend

Fidelity High Dividend

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity High Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fidelity High is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Middlefield Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Middlefield Equity Dividend are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Middlefield Equity may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fidelity High and Middlefield Equity

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

The idea behind Fidelity High Dividend and Middlefield Equity Dividend 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.