Correlation Between Fidelity Advisor and Voya Index
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Voya Index 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 Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Energy and Voya Index Plus, you can compare the effects of market volatilities on Fidelity Advisor and Voya Index 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 Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Voya Index.
Diversification Opportunities for Fidelity Advisor and Voya Index
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Voya is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Voya Index Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Plus 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 Energy are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Plus has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Voya Index go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Voya Index
Assuming the 90 days horizon Fidelity Advisor is expected to generate 1.81 times less return on investment than Voya Index. But when comparing it to its historical volatility, Fidelity Advisor Energy is 1.03 times less risky than Voya Index. It trades about 0.03 of its potential returns per unit of risk. Voya Index Plus is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,982 in Voya Index Plus on September 12, 2024 and sell it today you would earn a total of 446.00 from holding Voya Index Plus or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Energy vs. Voya Index Plus
Performance |
| Timeline |
| Fidelity Advisor Energy |
| Voya Index Plus |
Fidelity Advisor and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Voya Index
The main advantage of trading using opposite Fidelity Advisor and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Fidelity Advisor vs. Vanguard Energy Fund | Fidelity Advisor vs. Vanguard Energy Index | Fidelity Advisor vs. Fidelity Select Portfolios | Fidelity Advisor vs. Fidelity Advisor Energy |
| Voya Index vs. Goehring Rozencwajg Resources | Voya Index vs. Oil Gas Ultrasector | Voya Index vs. Fidelity Advisor Energy | Voya Index vs. World Energy 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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