Correlation Between Fidelity Advisor and Chestnut Street
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Chestnut Street 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 Chestnut Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Gold and Chestnut Street Exchange, you can compare the effects of market volatilities on Fidelity Advisor and Chestnut Street 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 Chestnut Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Chestnut Street.
Diversification Opportunities for Fidelity Advisor and Chestnut Street
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Chestnut is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Chestnut Street Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chestnut Street Exchange 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 Gold are associated (or correlated) with Chestnut Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chestnut Street Exchange has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Chestnut Street go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Chestnut Street
Assuming the 90 days horizon Fidelity Advisor Gold is expected to generate 4.19 times more return on investment than Chestnut Street. However, Fidelity Advisor is 4.19 times more volatile than Chestnut Street Exchange. It trades about 0.24 of its potential returns per unit of risk. Chestnut Street Exchange is currently generating about 0.13 per unit of risk. If you would invest 2,611 in Fidelity Advisor Gold on September 13, 2024 and sell it today you would earn a total of 222.00 from holding Fidelity Advisor Gold or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Gold vs. Chestnut Street Exchange
Performance |
| Timeline |
| Fidelity Advisor Gold |
| Chestnut Street Exchange |
Fidelity Advisor and Chestnut Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Chestnut Street
The main advantage of trading using opposite Fidelity Advisor and Chestnut Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Chestnut Street 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 Chestnut Street will offset losses from the drop in Chestnut Street's long position.| Fidelity Advisor vs. Touchstone Premium Yield | Fidelity Advisor vs. T Rowe Price | Fidelity Advisor vs. Versatile Bond Portfolio | Fidelity Advisor vs. Doubleline Yield Opportunities |
| Chestnut Street vs. Qs Growth Fund | Chestnut Street vs. T Rowe Price | Chestnut Street vs. Qs Defensive Growth | Chestnut Street vs. Needham Aggressive Growth |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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