Correlation Between Fidelity Advisor and Energy Fund
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Energy Fund 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 Energy Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Energy and Energy Fund Investor, you can compare the effects of market volatilities on Fidelity Advisor and Energy Fund 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 Energy Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Energy Fund.
Diversification Opportunities for Fidelity Advisor and Energy Fund
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Fidelity and Energy is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Energy and Energy Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Fund Investor 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 Energy are associated (or correlated) with Energy Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Fund Investor has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Energy Fund go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Energy Fund
Assuming the 90 days horizon Fidelity Advisor Energy is expected to generate 1.02 times more return on investment than Energy Fund. However, Fidelity Advisor is 1.02 times more volatile than Energy Fund Investor. It trades about 0.01 of its potential returns per unit of risk. Energy Fund Investor is currently generating about 0.0 per unit of risk. If you would invest 3,716 in Fidelity Advisor Energy on January 19, 2025 and sell it today you would lose (42.00) from holding Fidelity Advisor Energy or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Energy vs. Energy Fund Investor
Performance |
| Timeline |
| Fidelity Advisor Energy |
| Energy Fund Investor |
Fidelity Advisor and Energy Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Energy Fund
The main advantage of trading using opposite Fidelity Advisor and Energy Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Energy Fund 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 Energy Fund will offset losses from the drop in Energy Fund's long position.| Fidelity Advisor vs. Fidelity New Markets | Fidelity Advisor vs. Fidelity Advisor 529 | Fidelity Advisor vs. Fidelity New Markets | Fidelity Advisor vs. Fidelity Advisor Industrials |
| Energy Fund vs. Energy Services Fund | Energy Fund vs. Basic Materials Fund | Energy Fund vs. Health Care Fund | Energy Fund vs. Precious Metals Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets |