Correlation Between Voya High and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Voya High 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 Voya High and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya High Yield and Fidelity Advisor Strategic, you can compare the effects of market volatilities on Voya High 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 Voya High with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya High and Fidelity Advisor.
Diversification Opportunities for Voya High and Fidelity Advisor
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Fidelity is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Voya High Yield and Fidelity Advisor Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Str and Voya High 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 Voya High Yield 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 Str has no effect on the direction of Voya High i.e., Voya High and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Voya High and Fidelity Advisor
Assuming the 90 days horizon Voya High is expected to generate 1.45 times less return on investment than Fidelity Advisor. But when comparing it to its historical volatility, Voya High Yield is 1.63 times less risky than Fidelity Advisor. It trades about 0.12 of its potential returns per unit of risk. Fidelity Advisor Strategic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,158 in Fidelity Advisor Strategic on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Fidelity Advisor Strategic or generate 0.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Voya High Yield vs. Fidelity Advisor Strategic
Performance |
| Timeline |
| Voya High Yield |
| Fidelity Advisor Str |
Voya High and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya High and Fidelity Advisor
The main advantage of trading using opposite Voya High and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya High 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.| Voya High vs. SCOR PK | Voya High vs. Morningstar Unconstrained Allocation | Voya High vs. Via Renewables | Voya High vs. Bondbloxx ETF Trust |
| Fidelity Advisor vs. Msift High Yield | Fidelity Advisor vs. City National Rochdale | Fidelity Advisor vs. Neuberger Berman Income | Fidelity Advisor vs. Voya High Yield |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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