Correlation Between Dreyfus Yield and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Dreyfus Yield 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 Dreyfus Yield and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Yield Enhancement and Fidelity Advisor Energy, you can compare the effects of market volatilities on Dreyfus Yield 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 Dreyfus Yield with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Yield and Fidelity Advisor.
Diversification Opportunities for Dreyfus Yield and Fidelity Advisor
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dreyfus and Fidelity is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Yield Enhancement and Fidelity Advisor Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Energy and Dreyfus Yield 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 Dreyfus Yield Enhancement 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 Energy has no effect on the direction of Dreyfus Yield i.e., Dreyfus Yield and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Dreyfus Yield and Fidelity Advisor
Assuming the 90 days horizon Dreyfus Yield is expected to generate 1.0 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Dreyfus Yield Enhancement is 8.11 times less risky than Fidelity Advisor. It trades about 0.12 of its potential returns per unit of risk. Fidelity Advisor Energy is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,516 in Fidelity Advisor Energy on October 9, 2024 and sell it today you would earn a total of 247.00 from holding Fidelity Advisor Energy or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Yield Enhancement vs. Fidelity Advisor Energy
Performance |
| Timeline |
| Dreyfus Yield Enhancement |
| Fidelity Advisor Energy |
Dreyfus Yield and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Yield and Fidelity Advisor
The main advantage of trading using opposite Dreyfus Yield and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Yield 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.| Dreyfus Yield vs. Ab Large Cap | Dreyfus Yield vs. Transamerica Large Cap | Dreyfus Yield vs. Fisher Large Cap | Dreyfus Yield vs. Qs Large Cap |
| Fidelity Advisor vs. Artisan Select Equity | Fidelity Advisor vs. Dws Equity Sector | Fidelity Advisor vs. Franklin Equity Income | Fidelity Advisor vs. Quantitative Longshort Equity |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |