Correlation Between Fidelity Advisor and John Hancock
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and John Hancock 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 John Hancock 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 John Hancock Income, you can compare the effects of market volatilities on Fidelity Advisor and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and John Hancock.
Diversification Opportunities for Fidelity Advisor and John Hancock
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and John is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and John Hancock Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Income 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Income has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and John Hancock go up and down completely randomly.
Pair Corralation between Fidelity Advisor and John Hancock
Assuming the 90 days horizon Fidelity Advisor Energy is expected to generate 4.74 times more return on investment than John Hancock. However, Fidelity Advisor is 4.74 times more volatile than John Hancock Income. It trades about 0.03 of its potential returns per unit of risk. John Hancock Income is currently generating about 0.07 per unit of risk. If you would invest 4,518 in Fidelity Advisor Energy on September 12, 2024 and sell it today you would earn a total of 336.00 from holding Fidelity Advisor Energy or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Fidelity Advisor Energy vs. John Hancock Income
Performance |
| Timeline |
| Fidelity Advisor Energy |
| John Hancock Income |
Fidelity Advisor and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and John Hancock
The main advantage of trading using opposite Fidelity Advisor and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock'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 |
| John Hancock vs. Tortoise Energy Independence | John Hancock vs. Fidelity Advisor Energy | John Hancock vs. Firsthand Alternative Energy | John Hancock vs. Dreyfus Natural Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |