Correlation Between Mainstay Fiera and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Mainstay Fiera and Fidelity Advisor 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 Mainstay Fiera and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Fiera Smid and Fidelity Advisor Financial, you can compare the effects of market volatilities on Mainstay Fiera and Fidelity Advisor 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 Mainstay Fiera with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Fiera and Fidelity Advisor.
Diversification Opportunities for Mainstay Fiera and Fidelity Advisor
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mainstay and Fidelity is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Fiera Smid and Fidelity Advisor Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Fin and Mainstay Fiera 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 Mainstay Fiera Smid are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Fin has no effect on the direction of Mainstay Fiera i.e., Mainstay Fiera and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Mainstay Fiera and Fidelity Advisor
Assuming the 90 days horizon Mainstay Fiera is expected to generate 1.79 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Mainstay Fiera Smid is 1.1 times less risky than Fidelity Advisor. It trades about 0.05 of its potential returns per unit of risk. Fidelity Advisor Financial is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,551 in Fidelity Advisor Financial on September 2, 2024 and sell it today you would earn a total of 1,490 from holding Fidelity Advisor Financial or generate 58.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 69.35% |
| Values | Daily Returns |
Mainstay Fiera Smid vs. Fidelity Advisor Financial
Performance |
| Timeline |
| Mainstay Fiera Smid |
| Fidelity Advisor Fin |
Mainstay Fiera and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Fiera and Fidelity Advisor
The main advantage of trading using opposite Mainstay Fiera and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Fiera position performs unexpectedly, Fidelity Advisor 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 Advisor will offset losses from the drop in Fidelity Advisor's long position.| Mainstay Fiera vs. Victory Rs Small | Mainstay Fiera vs. Touchstone Small Cap | Mainstay Fiera vs. T Rowe Price | Mainstay Fiera vs. Artisan Small Cap |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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