Correlation Between Fidelity Advisor and Loomis Sayles
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Loomis Sayles 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 Loomis Sayles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Floating and Loomis Sayles Bond, you can compare the effects of market volatilities on Fidelity Advisor and Loomis Sayles 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 Loomis Sayles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Loomis Sayles.
Diversification Opportunities for Fidelity Advisor and Loomis Sayles
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and Loomis is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Floating and Loomis Sayles Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loomis Sayles Bond 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 Floating are associated (or correlated) with Loomis Sayles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loomis Sayles Bond has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Loomis Sayles go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Loomis Sayles
Assuming the 90 days horizon Fidelity Advisor Floating is expected to generate 0.47 times more return on investment than Loomis Sayles. However, Fidelity Advisor Floating is 2.12 times less risky than Loomis Sayles. It trades about 0.23 of its potential returns per unit of risk. Loomis Sayles Bond is currently generating about 0.08 per unit of risk. If you would invest 801.00 in Fidelity Advisor Floating on August 26, 2024 and sell it today you would earn a total of 131.00 from holding Fidelity Advisor Floating or generate 16.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity Advisor Floating vs. Loomis Sayles Bond
Performance |
Timeline |
Fidelity Advisor Floating |
Loomis Sayles Bond |
Fidelity Advisor and Loomis Sayles Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity Advisor and Loomis Sayles
The main advantage of trading using opposite Fidelity Advisor and Loomis Sayles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Loomis Sayles 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 Loomis Sayles will offset losses from the drop in Loomis Sayles' long position.Fidelity Advisor vs. Fidelity High Income | Fidelity Advisor vs. Fidelity New Markets | Fidelity Advisor vs. Fidelity Capital Income | Fidelity Advisor vs. Fidelity Total Bond |
Loomis Sayles vs. Metropolitan West Total | Loomis Sayles vs. Harbor Bond Fund | Loomis Sayles vs. Doubleline Total Return | Loomis Sayles vs. Fidelity Advisor Floating |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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