Correlation Between Small Cap and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Small Cap 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 Small Cap and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Small Cap Value and Fidelity Advisor New, you can compare the effects of market volatilities on Small Cap 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 Small Cap with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Small Cap and Fidelity Advisor.
Diversification Opportunities for Small Cap and Fidelity Advisor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SMALL and Fidelity is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Small Cap Value and Fidelity Advisor New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor New and Small Cap 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 Small Cap Value 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 New has no effect on the direction of Small Cap i.e., Small Cap and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Small Cap and Fidelity Advisor
Assuming the 90 days horizon Small Cap is expected to generate 1.37 times less return on investment than Fidelity Advisor. In addition to that, Small Cap is 1.33 times more volatile than Fidelity Advisor New. It trades about 0.08 of its total potential returns per unit of risk. Fidelity Advisor New is currently generating about 0.14 per unit of volatility. If you would invest 2,321 in Fidelity Advisor New on September 3, 2024 and sell it today you would earn a total of 891.00 from holding Fidelity Advisor New or generate 38.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Small Cap Value vs. Fidelity Advisor New
Performance |
| Timeline |
| Small Cap Value |
| Fidelity Advisor New |
Small Cap and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Small Cap and Fidelity Advisor
The main advantage of trading using opposite Small Cap and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Small Cap 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.| Small Cap vs. Vanguard Small Cap Value | Small Cap vs. Vanguard Small Cap Value | Small Cap vs. Us Small Cap | Small Cap vs. Us Targeted Value |
| Fidelity Advisor vs. Small Midcap Dividend Income | Fidelity Advisor vs. Baird Smallmid Cap | Fidelity Advisor vs. Small Cap Value | Fidelity Advisor vs. Chartwell Small Cap |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |