Correlation Between Fidelity Advisor and Shelton Core
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Shelton Core 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 Shelton Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Diversified and Shelton E Value, you can compare the effects of market volatilities on Fidelity Advisor and Shelton Core 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 Shelton Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Shelton Core.
Diversification Opportunities for Fidelity Advisor and Shelton Core
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FIDELITY and Shelton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Diversified and Shelton E Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton E Value 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 Diversified are associated (or correlated) with Shelton Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton E Value has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Shelton Core go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Shelton Core
Assuming the 90 days horizon Fidelity Advisor Diversified is expected to generate 1.55 times more return on investment than Shelton Core. However, Fidelity Advisor is 1.55 times more volatile than Shelton E Value. It trades about 0.1 of its potential returns per unit of risk. Shelton E Value is currently generating about 0.11 per unit of risk. If you would invest 2,483 in Fidelity Advisor Diversified on August 25, 2024 and sell it today you would earn a total of 1,447 from holding Fidelity Advisor Diversified or generate 58.28% 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 Diversified vs. Shelton E Value
Performance |
| Timeline |
| Fidelity Advisor Div |
| Shelton E Value |
Fidelity Advisor and Shelton Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Shelton Core
The main advantage of trading using opposite Fidelity Advisor and Shelton Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Shelton Core 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 Shelton Core will offset losses from the drop in Shelton Core's long position.| Fidelity Advisor vs. Adams Diversified Equity | Fidelity Advisor vs. Oaktree Diversifiedome | Fidelity Advisor vs. Pimco Diversified Income | Fidelity Advisor vs. Lord Abbett Diversified |
| Shelton Core vs. Fidelity Advisor Diversified | Shelton Core vs. Jhancock Diversified Macro | Shelton Core vs. Lord Abbett Diversified | Shelton Core vs. Conservative Balanced Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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