Correlation Between Fidelity Advisor and Mainstay High
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Mainstay High 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 High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Diversified and Mainstay High Yield, you can compare the effects of market volatilities on Fidelity Advisor and Mainstay High 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 High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Mainstay High.
Diversification Opportunities for Fidelity Advisor and Mainstay High
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fidelity and Mainstay is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Diversified and Mainstay High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay High Yield 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 Diversified are associated (or correlated) with Mainstay High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay High Yield has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Mainstay High go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Mainstay High
Assuming the 90 days horizon Fidelity Advisor Diversified is expected to generate 4.12 times more return on investment than Mainstay High. However, Fidelity Advisor is 4.12 times more volatile than Mainstay High Yield. It trades about 0.01 of its potential returns per unit of risk. Mainstay High Yield is currently generating about 0.0 per unit of risk. If you would invest 2,814 in Fidelity Advisor Diversified on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Fidelity Advisor Diversified or generate 0.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fidelity Advisor Diversified vs. Mainstay High Yield
Performance |
| Timeline |
| Fidelity Advisor Div |
| Mainstay High Yield |
Fidelity Advisor and Mainstay High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Mainstay High
The main advantage of trading using opposite Fidelity Advisor and Mainstay High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Mainstay High 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 High will offset losses from the drop in Mainstay High's long position.| Fidelity Advisor vs. Fidelity International Growth | Fidelity Advisor vs. Foreign Smaller Panies | Fidelity Advisor vs. Hartford Small Cap | Fidelity Advisor vs. Fidelity Small Cap |
| Mainstay High vs. Pimco Diversified Income | Mainstay High vs. Fidelity Advisor Diversified | Mainstay High vs. Davenport Small Cap | Mainstay High vs. Sentinel Small Pany |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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