Correlation Between Gabelli Utilities and Fidelity Advisor

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Can any of the company-specific risk be diversified away by investing in both Gabelli Utilities 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 Gabelli Utilities and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Utilities and Fidelity Advisor Utilities, you can compare the effects of market volatilities on Gabelli Utilities 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 Gabelli Utilities with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Utilities and Fidelity Advisor.

Diversification Opportunities for Gabelli Utilities and Fidelity Advisor

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Gabelli and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Utilities and Fidelity Advisor Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Uti and Gabelli Utilities 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 The Gabelli Utilities 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 Uti has no effect on the direction of Gabelli Utilities i.e., Gabelli Utilities and Fidelity Advisor go up and down completely randomly.

Pair Corralation between Gabelli Utilities and Fidelity Advisor

Assuming the 90 days horizon The Gabelli Utilities is expected to under-perform the Fidelity Advisor. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Gabelli Utilities is 1.39 times less risky than Fidelity Advisor. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Fidelity Advisor Utilities is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,616  in Fidelity Advisor Utilities on September 12, 2024 and sell it today you would earn a total of  1,052  from holding Fidelity Advisor Utilities or generate 29.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

The Gabelli Utilities  vs.  Fidelity Advisor Utilities

 Performance 
       Timeline  
Gabelli Utilities 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days The Gabelli Utilities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Gabelli Utilities is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Fidelity Advisor Uti 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Advisor Utilities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Fidelity Advisor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Gabelli Utilities and Fidelity Advisor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gabelli Utilities and Fidelity Advisor

The main advantage of trading using opposite Gabelli Utilities and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Utilities 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.
The idea behind The Gabelli Utilities and Fidelity Advisor Utilities pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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