Correlation Between Fidelity Advisor and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Sterling Capital 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 Sterling Capital 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 Sterling Capital Stratton, you can compare the effects of market volatilities on Fidelity Advisor and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Sterling Capital.
Diversification Opportunities for Fidelity Advisor and Sterling Capital
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fidelity and Sterling is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Technology and Sterling Capital Stratton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Stratton 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Stratton has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Sterling Capital go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Sterling Capital
Assuming the 90 days horizon Fidelity Advisor is expected to generate 2.41 times less return on investment than Sterling Capital. In addition to that, Fidelity Advisor is 1.23 times more volatile than Sterling Capital Stratton. It trades about 0.07 of its total potential returns per unit of risk. Sterling Capital Stratton is currently generating about 0.2 per unit of volatility. If you would invest 6,484 in Sterling Capital Stratton on August 30, 2024 and sell it today you would earn a total of 317.00 from holding Sterling Capital Stratton or generate 4.89% 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. Sterling Capital Stratton
Performance |
| Timeline |
| Fidelity Advisor Tec |
| Sterling Capital Stratton |
Fidelity Advisor and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Sterling Capital
The main advantage of trading using opposite Fidelity Advisor and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital'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 |
| Sterling Capital vs. Baird Strategic Municipal | Sterling Capital vs. The Hartford Municipal | Sterling Capital vs. Nebraska Municipal Fund | Sterling Capital vs. Counterpoint Tactical Municipal |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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