Correlation Between Fidelity Advisor and Catalyst Hedged
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Catalyst Hedged 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 Catalyst Hedged into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Financial and Catalyst Hedged Modity, you can compare the effects of market volatilities on Fidelity Advisor and Catalyst Hedged 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 Catalyst Hedged. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Catalyst Hedged.
Diversification Opportunities for Fidelity Advisor and Catalyst Hedged
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fidelity and CATALYST is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Financial and Catalyst Hedged Modity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Hedged Modity 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 Financial are associated (or correlated) with Catalyst Hedged. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Hedged Modity has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Catalyst Hedged go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Catalyst Hedged
Assuming the 90 days horizon Fidelity Advisor Financial is expected to generate 1.3 times more return on investment than Catalyst Hedged. However, Fidelity Advisor is 1.3 times more volatile than Catalyst Hedged Modity. It trades about 0.18 of its potential returns per unit of risk. Catalyst Hedged Modity is currently generating about -0.01 per unit of risk. If you would invest 3,126 in Fidelity Advisor Financial on September 1, 2024 and sell it today you would earn a total of 910.00 from holding Fidelity Advisor Financial or generate 29.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Fidelity Advisor Financial vs. Catalyst Hedged Modity
Performance |
| Timeline |
| Fidelity Advisor Fin |
| Catalyst Hedged Modity |
Fidelity Advisor and Catalyst Hedged Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Catalyst Hedged
The main advantage of trading using opposite Fidelity Advisor and Catalyst Hedged positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Catalyst Hedged 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 Catalyst Hedged will offset losses from the drop in Catalyst Hedged's long position.| Fidelity Advisor vs. Goehring Rozencwajg Resources | Fidelity Advisor vs. Clearbridge Energy Mlp | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Hennessy Bp Energy |
| Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged vs. Catalystsmh High Income | Catalyst Hedged vs. Catalyst Mlp Infrastructure |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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