Correlation Between SPDR SP and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both SPDR SP and Fidelity Advantage 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 SPDR SP and Fidelity Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and Fidelity Advantage Ether, you can compare the effects of market volatilities on SPDR SP and Fidelity Advantage 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 SPDR SP with a short position of Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and Fidelity Advantage.
Diversification Opportunities for SPDR SP and Fidelity Advantage
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SPDR and Fidelity is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and Fidelity Advantage Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage Ether and SPDR SP 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 SPDR SP 500 are associated (or correlated) with Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage Ether has no effect on the direction of SPDR SP i.e., SPDR SP and Fidelity Advantage go up and down completely randomly.
Pair Corralation between SPDR SP and Fidelity Advantage
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 0.13 times more return on investment than Fidelity Advantage. However, SPDR SP 500 is 7.51 times less risky than Fidelity Advantage. It trades about 0.15 of its potential returns per unit of risk. Fidelity Advantage Ether is currently generating about -0.22 per unit of risk. If you would invest 59,758 in SPDR SP 500 on November 18, 2024 and sell it today you would earn a total of 1,212 from holding SPDR SP 500 or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. Fidelity Advantage Ether
Performance |
| Timeline |
| SPDR SP 500 |
| Fidelity Advantage Ether |
SPDR SP and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and Fidelity Advantage
The main advantage of trading using opposite SPDR SP and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, Fidelity Advantage 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 Advantage will offset losses from the drop in Fidelity Advantage's long position.| SPDR SP vs. FT Vest Equity | SPDR SP vs. Zillow Group Class | SPDR SP vs. Northern Lights | SPDR SP vs. VanEck Vectors Moodys |
| Fidelity Advantage vs. Grayscale Funds Trust | Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. iShares Ethereum Trust | Fidelity Advantage vs. ProShares Trust |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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