Correlation Between Almacenes Xito and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Almacenes Xito 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 Almacenes Xito and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Almacenes xito SA and Fidelity Advisor Sumer, you can compare the effects of market volatilities on Almacenes Xito 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 Almacenes Xito with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almacenes Xito and Fidelity Advisor.
Diversification Opportunities for Almacenes Xito and Fidelity Advisor
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Almacenes and Fidelity is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Almacenes xito SA and Fidelity Advisor Sumer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sumer and Almacenes Xito 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 Almacenes xito SA 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 Sumer has no effect on the direction of Almacenes Xito i.e., Almacenes Xito and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Almacenes Xito and Fidelity Advisor
Given the investment horizon of 90 days Almacenes xito SA is expected to under-perform the Fidelity Advisor. In addition to that, Almacenes Xito is 1.59 times more volatile than Fidelity Advisor Sumer. It trades about -0.25 of its total potential returns per unit of risk. Fidelity Advisor Sumer is currently generating about 0.37 per unit of volatility. If you would invest 3,328 in Fidelity Advisor Sumer on August 29, 2024 and sell it today you would earn a total of 322.00 from holding Fidelity Advisor Sumer or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Almacenes xito SA vs. Fidelity Advisor Sumer
Performance |
| Timeline |
| Almacenes xito SA |
| Fidelity Advisor Sumer |
Almacenes Xito and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Almacenes Xito and Fidelity Advisor
The main advantage of trading using opposite Almacenes Xito and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Almacenes Xito 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.| Almacenes Xito vs. MOGU Inc | Almacenes Xito vs. iPower Inc | Almacenes Xito vs. Jeffs Brands | Almacenes Xito vs. Kidpik Corp |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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