Correlation Between Fidelity Advisor and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Credit Suisse 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 Credit Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Technology and Credit Suisse Strategic, you can compare the effects of market volatilities on Fidelity Advisor and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Credit Suisse.
Diversification Opportunities for Fidelity Advisor and Credit Suisse
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Credit is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Technology and Credit Suisse Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Strategic 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 Technology are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Strategic has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Credit Suisse go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Credit Suisse
Assuming the 90 days horizon Fidelity Advisor Technology is expected to generate 11.21 times more return on investment than Credit Suisse. However, Fidelity Advisor is 11.21 times more volatile than Credit Suisse Strategic. It trades about 0.11 of its potential returns per unit of risk. Credit Suisse Strategic is currently generating about 0.18 per unit of risk. If you would invest 14,075 in Fidelity Advisor Technology on September 13, 2024 and sell it today you would earn a total of 745.00 from holding Fidelity Advisor Technology or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Technology vs. Credit Suisse Strategic
Performance |
| Timeline |
| Fidelity Advisor Tec |
| Credit Suisse Strategic |
Fidelity Advisor and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Credit Suisse
The main advantage of trading using opposite Fidelity Advisor and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse's long position.| Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Fidelity Advisor Semiconductors |
| Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Floating | Credit Suisse vs. Credit Suisse Modity | Credit Suisse vs. Credit Suisse Modity |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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