Correlation Between Fidelity Advisor and Oklahoma Municipal
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Oklahoma Municipal 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 Fidelity Advisor and Oklahoma Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Freedom and Oklahoma Municipal Fund, you can compare the effects of market volatilities on Fidelity Advisor and Oklahoma Municipal 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 Fidelity Advisor with a short position of Oklahoma Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Oklahoma Municipal.
Diversification Opportunities for Fidelity Advisor and Oklahoma Municipal
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Oklahoma is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Freedom and Oklahoma Municipal Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oklahoma Municipal and Fidelity Advisor 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 Fidelity Advisor Freedom are associated (or correlated) with Oklahoma Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oklahoma Municipal has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Oklahoma Municipal go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Oklahoma Municipal
Assuming the 90 days horizon Fidelity Advisor Freedom is expected to generate 2.68 times more return on investment than Oklahoma Municipal. However, Fidelity Advisor is 2.68 times more volatile than Oklahoma Municipal Fund. It trades about 0.09 of its potential returns per unit of risk. Oklahoma Municipal Fund is currently generating about 0.04 per unit of risk. If you would invest 1,432 in Fidelity Advisor Freedom on August 26, 2024 and sell it today you would earn a total of 303.00 from holding Fidelity Advisor Freedom or generate 21.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Freedom vs. Oklahoma Municipal Fund
Performance |
| Timeline |
| Fidelity Advisor Freedom |
| Oklahoma Municipal |
Fidelity Advisor and Oklahoma Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Oklahoma Municipal
The main advantage of trading using opposite Fidelity Advisor and Oklahoma Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Oklahoma Municipal 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 Oklahoma Municipal will offset losses from the drop in Oklahoma Municipal's long position.| Fidelity Advisor vs. Transamerica Intermediate Muni | Fidelity Advisor vs. Oklahoma Municipal Fund | Fidelity Advisor vs. Morningstar Municipal Bond | Fidelity Advisor vs. Baird Strategic Municipal |
| Oklahoma Municipal vs. Ab Global Risk | Oklahoma Municipal vs. Pace High Yield | Oklahoma Municipal vs. T Rowe Price | Oklahoma Municipal vs. Victory High Income |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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