Correlation Between Fidelity Advisor and Lazard Equity
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Lazard Equity 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 Lazard Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Large and Lazard Equity Centrated, you can compare the effects of market volatilities on Fidelity Advisor and Lazard Equity 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 Lazard Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Lazard Equity.
Diversification Opportunities for Fidelity Advisor and Lazard Equity
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Lazard is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Large and Lazard Equity Centrated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lazard Equity Centrated 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 Large are associated (or correlated) with Lazard Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lazard Equity Centrated has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Lazard Equity go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Lazard Equity
Assuming the 90 days horizon Fidelity Advisor Large is expected to generate 0.84 times more return on investment than Lazard Equity. However, Fidelity Advisor Large is 1.19 times less risky than Lazard Equity. It trades about 0.34 of its potential returns per unit of risk. Lazard Equity Centrated is currently generating about 0.12 per unit of risk. If you would invest 5,321 in Fidelity Advisor Large on September 1, 2024 and sell it today you would earn a total of 301.00 from holding Fidelity Advisor Large or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Advisor Large vs. Lazard Equity Centrated
Performance |
| Timeline |
| Fidelity Advisor Large |
| Lazard Equity Centrated |
Fidelity Advisor and Lazard Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Lazard Equity
The main advantage of trading using opposite Fidelity Advisor and Lazard Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Lazard Equity 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 Lazard Equity will offset losses from the drop in Lazard Equity's long position.| Fidelity Advisor vs. Fidelity Focused Stock | Fidelity Advisor vs. Fidelity Stock Selector | Fidelity Advisor vs. Fidelity Trend Fund | Fidelity Advisor vs. Fidelity Advisor Value |
| Lazard Equity vs. Lazard Equity Centrated | Lazard Equity vs. Siit Dynamic Asset | Lazard Equity vs. Fidelity Advisor Large | Lazard Equity vs. Siit Large Cap |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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