Correlation Between Fidelity Advisor and Fidelity Focused
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Fidelity Focused 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 Fidelity Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Series and Fidelity Focused Stock, you can compare the effects of market volatilities on Fidelity Advisor and Fidelity Focused 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 Fidelity Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Fidelity Focused.
Diversification Opportunities for Fidelity Advisor and Fidelity Focused
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Fidelity is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Series and Fidelity Focused Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Focused Stock 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 Series are associated (or correlated) with Fidelity Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Focused Stock has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Fidelity Focused go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Fidelity Focused
Assuming the 90 days horizon Fidelity Advisor Series is expected to generate 1.02 times more return on investment than Fidelity Focused. However, Fidelity Advisor is 1.02 times more volatile than Fidelity Focused Stock. It trades about 0.13 of its potential returns per unit of risk. Fidelity Focused Stock is currently generating about 0.13 per unit of risk. If you would invest 1,206 in Fidelity Advisor Series on August 26, 2024 and sell it today you would earn a total of 565.00 from holding Fidelity Advisor Series or generate 46.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Series vs. Fidelity Focused Stock
Performance |
| Timeline |
| Fidelity Advisor Series |
| Fidelity Focused Stock |
Fidelity Advisor and Fidelity Focused Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Fidelity Focused
The main advantage of trading using opposite Fidelity Advisor and Fidelity Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Fidelity Focused 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 Focused will offset losses from the drop in Fidelity Focused's long position.| Fidelity Advisor vs. Lord Abbett Growth | Fidelity Advisor vs. Fidelity Advisor Growth | Fidelity Advisor vs. Aquagold International | Fidelity Advisor vs. Morningstar Unconstrained Allocation |
| Fidelity Focused vs. Lord Abbett Growth | Fidelity Focused vs. Fidelity Advisor Series | Fidelity Focused vs. Fidelity Advisor Growth | Fidelity Focused vs. Aquagold International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |