Correlation Between Fidelity Advantage and BetaPro SP
Can any of the company-specific risk be diversified away by investing in both Fidelity Advantage and BetaPro SP 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 Advantage and BetaPro SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advantage Bitcoin and BetaPro SP 500, you can compare the effects of market volatilities on Fidelity Advantage and BetaPro SP 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 Advantage with a short position of BetaPro SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advantage and BetaPro SP.
Diversification Opportunities for Fidelity Advantage and BetaPro SP
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and BetaPro is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advantage Bitcoin and BetaPro SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaPro SP 500 and Fidelity Advantage 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 Advantage Bitcoin are associated (or correlated) with BetaPro SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaPro SP 500 has no effect on the direction of Fidelity Advantage i.e., Fidelity Advantage and BetaPro SP go up and down completely randomly.
Pair Corralation between Fidelity Advantage and BetaPro SP
Assuming the 90 days trading horizon Fidelity Advantage Bitcoin is expected to generate 4.92 times more return on investment than BetaPro SP. However, Fidelity Advantage is 4.92 times more volatile than BetaPro SP 500. It trades about 0.32 of its potential returns per unit of risk. BetaPro SP 500 is currently generating about -0.15 per unit of risk. If you would invest 3,205 in Fidelity Advantage Bitcoin on August 29, 2024 and sell it today you would earn a total of 1,033 from holding Fidelity Advantage Bitcoin or generate 32.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advantage Bitcoin vs. BetaPro SP 500
Performance |
| Timeline |
| Fidelity Advantage |
| BetaPro SP 500 |
Fidelity Advantage and BetaPro SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advantage and BetaPro SP
The main advantage of trading using opposite Fidelity Advantage and BetaPro SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advantage position performs unexpectedly, BetaPro SP 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 BetaPro SP will offset losses from the drop in BetaPro SP's long position.| Fidelity Advantage vs. Fidelity Global Value | Fidelity Advantage vs. Fidelity Momentum ETF | Fidelity Advantage vs. Fidelity Canadian High | Fidelity Advantage vs. Fidelity All in One Balanced |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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