Correlation Between Fidelity Advisor and Cullen International
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Cullen International 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 Cullen International 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 Cullen International High, you can compare the effects of market volatilities on Fidelity Advisor and Cullen International 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 Cullen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Cullen International.
Diversification Opportunities for Fidelity Advisor and Cullen International
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIDELITY and Cullen is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Financial and Cullen International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen International High 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 Cullen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen International High has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Cullen International go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Cullen International
Assuming the 90 days horizon Fidelity Advisor Financial is expected to under-perform the Cullen International. In addition to that, Fidelity Advisor is 1.1 times more volatile than Cullen International High. It trades about -0.18 of its total potential returns per unit of risk. Cullen International High is currently generating about 0.29 per unit of volatility. If you would invest 1,104 in Cullen International High on November 28, 2024 and sell it today you would earn a total of 48.00 from holding Cullen International High or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Financial vs. Cullen International High
Performance |
| Timeline |
| Fidelity Advisor Fin |
| Cullen International High |
Fidelity Advisor and Cullen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Cullen International
The main advantage of trading using opposite Fidelity Advisor and Cullen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Cullen International 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 Cullen International will offset losses from the drop in Cullen International's long position.| Fidelity Advisor vs. Gabelli Global Financial | Fidelity Advisor vs. Mesirow Financial Small | Fidelity Advisor vs. Icon Financial Fund | Fidelity Advisor vs. Blackrock Financial Institutions |
| Cullen International vs. Franklin Moderate Allocation | Cullen International vs. Knights Of Umbus | Cullen International vs. Calvert Moderate Allocation | Cullen International vs. Guidemark 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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