Correlation Between Fidelity Municipal and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Fidelity Municipal and Fidelity Advisor 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 Municipal and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Municipal Trust and Fidelity Advisor 529, you can compare the effects of market volatilities on Fidelity Municipal and Fidelity Advisor 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 Municipal with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Municipal and Fidelity Advisor.
Diversification Opportunities for Fidelity Municipal and Fidelity Advisor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Municipal Trust and Fidelity Advisor 529 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor 529 and Fidelity Municipal 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 Municipal Trust are associated (or correlated) with Fidelity Advisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor 529 has no effect on the direction of Fidelity Municipal i.e., Fidelity Municipal and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Fidelity Municipal and Fidelity Advisor
If you would invest 3,020 in Fidelity Advisor 529 on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Fidelity Advisor 529 or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Municipal Trust vs. Fidelity Advisor 529
Performance |
| Timeline |
| Fidelity Municipal Trust |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fidelity Advisor 529 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fidelity Municipal and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Municipal and Fidelity Advisor
The main advantage of trading using opposite Fidelity Municipal and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Municipal position performs unexpectedly, Fidelity Advisor 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 Fidelity Advisor will offset losses from the drop in Fidelity Advisor's long position.| Fidelity Municipal vs. T Rowe Price | Fidelity Municipal vs. Qs Large Cap | Fidelity Municipal vs. Touchstone Large Cap | Fidelity Municipal vs. Enhanced Large Pany |
| Fidelity Advisor vs. Nuveen Minnesota Municipal | Fidelity Advisor vs. Alliancebernstein National Municipal | Fidelity Advisor vs. Federated Government Ultrashort | Fidelity Advisor 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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