Correlation Between Fidelity Advisor and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Mainstay Mackay 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 Mainstay Mackay 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 Mainstay Mackay Short, you can compare the effects of market volatilities on Fidelity Advisor and Mainstay Mackay 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 Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Mainstay Mackay.
Diversification Opportunities for Fidelity Advisor and Mainstay Mackay
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Mainstay is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Mainstay Mackay Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Short 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 Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Short has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Mainstay Mackay
Assuming the 90 days horizon Fidelity Advisor Energy is expected to generate 8.11 times more return on investment than Mainstay Mackay. However, Fidelity Advisor is 8.11 times more volatile than Mainstay Mackay Short. It trades about 0.3 of its potential returns per unit of risk. Mainstay Mackay Short is currently generating about 0.08 per unit of risk. If you would invest 4,791 in Fidelity Advisor Energy on September 3, 2024 and sell it today you would earn a total of 310.00 from holding Fidelity Advisor Energy or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Energy vs. Mainstay Mackay Short
Performance |
| Timeline |
| Fidelity Advisor Energy |
| Mainstay Mackay Short |
Fidelity Advisor and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Mainstay Mackay
The main advantage of trading using opposite Fidelity Advisor and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay's long position.| Fidelity Advisor vs. Sprott Gold Equity | Fidelity Advisor vs. Precious Metals And | Fidelity Advisor vs. Gamco Global Gold | Fidelity Advisor vs. Vy Goldman Sachs |
| Mainstay Mackay vs. Goehring Rozencwajg Resources | Mainstay Mackay vs. Oil Gas Ultrasector | Mainstay Mackay vs. Fidelity Advisor Energy | Mainstay Mackay vs. Energy Basic Materials |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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