Correlation Between Fidelity Advisor and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Federated Strategic 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 Federated Strategic 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 Federated Strategic Value, you can compare the effects of market volatilities on Fidelity Advisor and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Federated Strategic.
Diversification Opportunities for Fidelity Advisor and Federated Strategic
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fidelity and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Diversified and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Federated Strategic go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Federated Strategic
Assuming the 90 days horizon Fidelity Advisor is expected to generate 2.37 times less return on investment than Federated Strategic. In addition to that, Fidelity Advisor is 1.61 times more volatile than Federated Strategic Value. It trades about 0.06 of its total potential returns per unit of risk. Federated Strategic Value is currently generating about 0.24 per unit of volatility. If you would invest 616.00 in Federated Strategic Value on September 4, 2024 and sell it today you would earn a total of 15.00 from holding Federated Strategic Value or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Diversified vs. Federated Strategic Value
Performance |
| Timeline |
| Fidelity Advisor Div |
| Federated Strategic Value |
Fidelity Advisor and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Federated Strategic
The main advantage of trading using opposite Fidelity Advisor and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic'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 |
| Federated Strategic vs. Heartland Value Plus | Federated Strategic vs. Mutual Of America | Federated Strategic vs. Ultramid Cap Profund Ultramid Cap | Federated Strategic vs. Amg River Road |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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