Correlation Between Fidelity Advisor and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Stone Harbor 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 Stone Harbor 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 Stone Harbor Local, you can compare the effects of market volatilities on Fidelity Advisor and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Stone Harbor.
Diversification Opportunities for Fidelity Advisor and Stone Harbor
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fidelity and Stone is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Stone Harbor Local in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Local 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Local has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Stone Harbor go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Stone Harbor
Assuming the 90 days horizon Fidelity Advisor Gold is expected to generate 3.69 times more return on investment than Stone Harbor. However, Fidelity Advisor is 3.69 times more volatile than Stone Harbor Local. It trades about 0.08 of its potential returns per unit of risk. Stone Harbor Local is currently generating about 0.03 per unit of risk. If you would invest 2,357 in Fidelity Advisor Gold on September 14, 2024 and sell it today you would earn a total of 393.00 from holding Fidelity Advisor Gold or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fidelity Advisor Gold vs. Stone Harbor Local
Performance |
| Timeline |
| Fidelity Advisor Gold |
| Stone Harbor Local |
Fidelity Advisor and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Stone Harbor
The main advantage of trading using opposite Fidelity Advisor and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Fidelity Advisor vs. Janus High Yield Fund | Fidelity Advisor vs. Artisan High Income | Fidelity Advisor vs. Neuberger Berman Income | Fidelity Advisor vs. Voya High Yield |
| Stone Harbor vs. Stone Harbor Emerging | Stone Harbor vs. Stone Harbor Emerging | Stone Harbor vs. Investment Of America | Stone Harbor vs. Environment And Alternative |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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