Correlation Between Fidelity Advisor and Crossmark Steward
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Crossmark Steward 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 Crossmark Steward into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Health and Crossmark Steward Equity, you can compare the effects of market volatilities on Fidelity Advisor and Crossmark Steward 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 Crossmark Steward. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Crossmark Steward.
Diversification Opportunities for Fidelity Advisor and Crossmark Steward
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Crossmark is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Health and Crossmark Steward Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crossmark Steward Equity 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 Health are associated (or correlated) with Crossmark Steward. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crossmark Steward Equity has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Crossmark Steward go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Crossmark Steward
Assuming the 90 days horizon Fidelity Advisor Health is expected to generate 1.91 times more return on investment than Crossmark Steward. However, Fidelity Advisor is 1.91 times more volatile than Crossmark Steward Equity. It trades about -0.04 of its potential returns per unit of risk. Crossmark Steward Equity is currently generating about -0.22 per unit of risk. If you would invest 4,987 in Fidelity Advisor Health on August 29, 2024 and sell it today you would lose (93.00) from holding Fidelity Advisor Health or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Fidelity Advisor Health vs. Crossmark Steward Equity
Performance |
| Timeline |
| Fidelity Advisor Health |
| Crossmark Steward Equity |
Fidelity Advisor and Crossmark Steward Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Crossmark Steward
The main advantage of trading using opposite Fidelity Advisor and Crossmark Steward positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Crossmark Steward 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 Crossmark Steward will offset losses from the drop in Crossmark Steward's long position.| Fidelity Advisor vs. Fidelity Advisor Technology | Fidelity Advisor vs. Fidelity Advisor Biotechnology | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Utilities |
| Crossmark Steward vs. Live Oak Health | Crossmark Steward vs. Prudential Health Sciences | Crossmark Steward vs. Fidelity Advisor Health | Crossmark Steward vs. Health Care Fund |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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