Correlation Between Fidelity Advisor and Frost Kempner
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Frost Kempner 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 Frost Kempner 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 Frost Kempner Multi Cap, you can compare the effects of market volatilities on Fidelity Advisor and Frost Kempner 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 Frost Kempner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Frost Kempner.
Diversification Opportunities for Fidelity Advisor and Frost Kempner
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Frost is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Frost Kempner Multi Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Kempner Multi 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 Frost Kempner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Kempner Multi has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Frost Kempner go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Frost Kempner
Assuming the 90 days horizon Fidelity Advisor Gold is expected to generate 3.65 times more return on investment than Frost Kempner. However, Fidelity Advisor is 3.65 times more volatile than Frost Kempner Multi Cap. It trades about 0.24 of its potential returns per unit of risk. Frost Kempner Multi Cap is currently generating about -0.05 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. Frost Kempner Multi Cap
Performance |
| Timeline |
| Fidelity Advisor Gold |
| Frost Kempner Multi |
Fidelity Advisor and Frost Kempner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Frost Kempner
The main advantage of trading using opposite Fidelity Advisor and Frost Kempner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Frost Kempner 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 Frost Kempner will offset losses from the drop in Frost Kempner'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 |
| Frost Kempner vs. Frost Growth Equity | Frost Kempner vs. Frost Low Duration | Frost Kempner vs. Frost Total Return | Frost Kempner vs. Frost Kempner Treasury |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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