Correlation Between Cohen Steers and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Cohen Steers and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Intl and Fidelity Advisor Technology, you can compare the effects of market volatilities on Cohen Steers 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 Cohen Steers with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Fidelity Advisor.
Diversification Opportunities for Cohen Steers and Fidelity Advisor
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cohen and Fidelity is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Intl and Fidelity Advisor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Tec and Cohen Steers 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 Cohen Steers Intl 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 Tec has no effect on the direction of Cohen Steers i.e., Cohen Steers and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Cohen Steers and Fidelity Advisor
Assuming the 90 days horizon Cohen Steers Intl is expected to under-perform the Fidelity Advisor. But the mutual fund apears to be less risky and, when comparing its historical volatility, Cohen Steers Intl is 1.3 times less risky than Fidelity Advisor. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Fidelity Advisor Technology is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 13,683 in Fidelity Advisor Technology on September 3, 2024 and sell it today you would earn a total of 873.00 from holding Fidelity Advisor Technology or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Intl vs. Fidelity Advisor Technology
Performance |
| Timeline |
| Cohen Steers Intl |
| Fidelity Advisor Tec |
Cohen Steers and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Fidelity Advisor
The main advantage of trading using opposite Cohen Steers and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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.| Cohen Steers vs. Mid Cap Growth | Cohen Steers vs. Rational Defensive Growth | Cohen Steers vs. Small Pany Growth | Cohen Steers vs. Champlain Mid Cap |
| Fidelity Advisor vs. Fidelity Advisor Health | Fidelity Advisor vs. Fidelity Advisor Financial | Fidelity Advisor vs. Fidelity Advisor Energy | Fidelity Advisor vs. Fidelity Advisor Semiconductors |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |