Correlation Between Astor Longshort and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Astor Longshort 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 Astor Longshort and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Fidelity Advisor Value, you can compare the effects of market volatilities on Astor Longshort 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 Astor Longshort with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Fidelity Advisor.
Diversification Opportunities for Astor Longshort and Fidelity Advisor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Fidelity Advisor Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Value and Astor Longshort 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 Astor Longshort Fund 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 Value has no effect on the direction of Astor Longshort i.e., Astor Longshort and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Astor Longshort and Fidelity Advisor
Assuming the 90 days horizon Astor Longshort is expected to generate 1.07 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Astor Longshort Fund is 2.57 times less risky than Fidelity Advisor. It trades about 0.14 of its potential returns per unit of risk. Fidelity Advisor Value is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,789 in Fidelity Advisor Value on September 14, 2024 and sell it today you would earn a total of 649.00 from holding Fidelity Advisor Value or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Fidelity Advisor Value
Performance |
| Timeline |
| Astor Longshort |
| Fidelity Advisor Value |
Astor Longshort and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Fidelity Advisor
The main advantage of trading using opposite Astor Longshort and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort 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.| Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Star Fund | Astor Longshort vs. Astor Longshort Fund | Astor Longshort vs. Astor Longshort Fund |
| Fidelity Advisor vs. Fidelity Sai Convertible | Fidelity Advisor vs. Lord Abbett Convertible | Fidelity Advisor vs. Calamos Dynamic Convertible | Fidelity Advisor vs. Absolute Convertible Arbitrage |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |