Correlation Between Spire and Fidelity Advisor
Can any of the company-specific risk be diversified away by investing in both Spire 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 Spire and Fidelity Advisor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Inc and Fidelity Advisor Utilities, you can compare the effects of market volatilities on Spire 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 Spire with a short position of Fidelity Advisor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire and Fidelity Advisor.
Diversification Opportunities for Spire and Fidelity Advisor
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spire and Fidelity is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Spire Inc 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 Spire 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 Spire Inc 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 Spire i.e., Spire and Fidelity Advisor go up and down completely randomly.
Pair Corralation between Spire and Fidelity Advisor
Allowing for the 90-day total investment horizon Spire Inc is expected to generate 1.27 times more return on investment than Fidelity Advisor. However, Spire is 1.27 times more volatile than Fidelity Advisor Utilities. It trades about 0.19 of its potential returns per unit of risk. Fidelity Advisor Utilities is currently generating about -0.07 per unit of risk. If you would invest 6,534 in Spire Inc on September 12, 2024 and sell it today you would earn a total of 337.00 from holding Spire Inc or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Inc vs. Fidelity Advisor Utilities
Performance |
| Timeline |
| Spire Inc |
| Fidelity Advisor Uti |
Spire and Fidelity Advisor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire and Fidelity Advisor
The main advantage of trading using opposite Spire and Fidelity Advisor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire 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.| Spire vs. Northwest Natural Gas | Spire vs. Chesapeake Utilities | Spire vs. One Gas | Spire vs. NewJersey Resources |
| Fidelity Advisor vs. Alpine Dynamic Dividend | Fidelity Advisor vs. The Gabelli Utilities | Fidelity Advisor vs. The Gabelli Equity | Fidelity Advisor vs. Hennessy Gas Utility |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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