Correlation Between City National and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both City National 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 City National and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Fidelity Advisor Strategic, you can compare the effects of market volatilities on City National 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 City National with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Fidelity Advisor.
Diversification Opportunities for City National and Fidelity Advisor
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Fidelity is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale 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 City National 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 City National Rochdale 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 City National i.e., City National and Fidelity Advisor go up and down completely randomly.
Pair Corralation between City National and Fidelity Advisor
Assuming the 90 days horizon City National Rochdale is expected to generate 0.25 times more return on investment than Fidelity Advisor. However, City National Rochdale is 4.05 times less risky than Fidelity Advisor. It trades about 0.65 of its potential returns per unit of risk. Fidelity Advisor Strategic is currently generating about 0.14 per unit of risk. If you would invest 1,961 in City National Rochdale on December 3, 2024 and sell it today you would earn a total of 14.00 from holding City National Rochdale or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Fidelity Advisor Strategic
Performance |
| Timeline |
| City National Rochdale |
| Fidelity Advisor Str |
City National and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Fidelity Advisor
The main advantage of trading using opposite City National and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National 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.| City National vs. Virtus Seix Government | City National vs. Lord Abbett Intermediate | City National vs. Ab Municipal Bond | City National vs. Franklin Adjustable Government |
| Fidelity Advisor vs. Upright Assets Allocation | Fidelity Advisor vs. The Hartford Servative | Fidelity Advisor vs. Franklin Moderate Allocation | Fidelity Advisor vs. Washington Mutual Investors |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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