Correlation Between Fidelity Advisor and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Mainstay Large 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 Large 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 Mainstay Large Cap, you can compare the effects of market volatilities on Fidelity Advisor and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Mainstay Large.
Diversification Opportunities for Fidelity Advisor and Mainstay Large
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Mainstay is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Technology and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Mainstay Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Mainstay Large go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Mainstay Large
Assuming the 90 days horizon Fidelity Advisor Technology is expected to generate 1.3 times more return on investment than Mainstay Large. However, Fidelity Advisor is 1.3 times more volatile than Mainstay Large Cap. It trades about 0.09 of its potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.1 per unit of risk. If you would invest 12,137 in Fidelity Advisor Technology on September 3, 2024 and sell it today you would earn a total of 2,419 from holding Fidelity Advisor Technology or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Technology vs. Mainstay Large Cap
Performance |
| Timeline |
| Fidelity Advisor Tec |
| Mainstay Large Cap |
Fidelity Advisor and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Mainstay Large
The main advantage of trading using opposite Fidelity Advisor and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large'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 |
| Mainstay Large vs. T Rowe Price | Mainstay Large vs. Franklin Lifesmart 2050 | Mainstay Large vs. T Rowe Price | Mainstay Large vs. T Rowe Price |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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