Correlation Between Fidelity Advisor and Consumer Products
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Consumer Products 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 Consumer Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Semiconductors and Consumer Products Fund, you can compare the effects of market volatilities on Fidelity Advisor and Consumer Products 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 Consumer Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Consumer Products.
Diversification Opportunities for Fidelity Advisor and Consumer Products
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fidelity and Consumer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Semiconductor and Consumer Products Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Products 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 Semiconductors are associated (or correlated) with Consumer Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Products has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Consumer Products go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Consumer Products
Assuming the 90 days horizon Fidelity Advisor Semiconductors is expected to under-perform the Consumer Products. In addition to that, Fidelity Advisor is 3.3 times more volatile than Consumer Products Fund. It trades about -0.06 of its total potential returns per unit of risk. Consumer Products Fund is currently generating about 0.1 per unit of volatility. If you would invest 4,279 in Consumer Products Fund on August 28, 2024 and sell it today you would earn a total of 54.00 from holding Consumer Products Fund or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Semiconductor vs. Consumer Products Fund
Performance |
| Timeline |
| Fidelity Advisor Sem |
| Consumer Products |
Fidelity Advisor and Consumer Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Consumer Products
The main advantage of trading using opposite Fidelity Advisor and Consumer Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Consumer Products 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 Consumer Products will offset losses from the drop in Consumer Products' long position.| Fidelity Advisor vs. Astor Longshort Fund | Fidelity Advisor vs. Rbc Short Duration | Fidelity Advisor vs. Vanguard Institutional Short Term | Fidelity Advisor vs. Barings Active Short |
| Consumer Products vs. Kellanova | Consumer Products vs. Bunge Limited | Consumer Products vs. BJs Wholesale Club | Consumer Products vs. Colgate Palmolive |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |